When PPAI released its first study of the French promotional products market in late January, it came as no surprise to industry pros in that country that industry sales had trended down in both 2023 and 2024.
More concerning is that the ennuimay have set in to stay for a while, according to some attendees this week at Salon CTCO in Lyon, France’s largest merch trade show. On both the distributor and supplier side, company leaders in France told PPAI Media that, particularly in the months since the 2024 Summer Olympics were held in Paris, their revenue is down by double digits year-over-year.
- In PPAI’s France Distributors’ Promotional Products Sales report, published with support from five European industry entities, revenues were found to be down 1.87% from 2022 to 2023.
- PPAI’s French market projection for 2024 slipped another 3.2%, to just under $2.2 billion (USD).
The country’s larger economy is undergoing its struggles, with inflation outpacing GDP in recent cycles. The yellow-vest movement of labor upheaval and social unrest, government instability and budgetary pressures portend more challenges on the near horizon, as do threats of tariffs against European countries by Donald Trump.
Frédéric Misseri, associate director at Synneo, one of France’s largest distributors, and a stalwart of European industry collaboration, pointed to geopolitical causes for France’s troubles, such as rising energy costs caused by Russia’s war in Ukraine.
“A lot of [end-buyer] companies in France, even if they’re doing well, they are reducing budgets; they want to be cautious for the future,” Misseri says. “I’ve seen the reduction in budgets with our clients.”
Frédéric Misseri
Associate Director, Synneo
Warning Signs
Pierre Mirlit of the shows’ presenting company, Infopro Digital, suggest that it may be 2027 and the election of new, consolidated leadership in France before the country’s economic uncertainty begins to unease. Whereas the Olympics in July and August were expected to be a financial boon for the French industry, sales returns were disappointing.
And over the course of 2024, French sales seemed to only get worse each quarter, according to data curated by Stanislas Confavreux, CEO and founder of tech supplier SCX Design. Confavreux conducts a quarterly survey of 35 fellow French suppliers, which showed year-over-year declines across most product categories for every period measured last year.
“It was a stronger decrease in Quarter 3 and Quarter 4,” Confavreux says. “Business doesn’t like uncertainty. And the trend of the beginning of this year is matching with the end of last year. So we cannot say that everybody is optimistic.”
Stanislas Confavreux
CEO & Founder, SCX Design
Hard goods categories were more suppressed than textiles in Confavreux’s data, which may suggest a larger concern for the European industry, and eventually branded merch in America, too. There is some evidence that the long-held fear of sustainability-minded buyers slashing or fully eliminating their promo spend could be coming true. Europe is generally considered 5-10 years ahead of the United States for sustainability trends, including regulations, which promo industry leaders from numerous countries say have become too much of a logistical burden. On the bright side, increased demand for sustainable goods has mode those products less expensive compared to the alternatives.
A continent-wide commitment to sustainability may be good for future generations, Misseri says: “But the impact is a lot of companies look to our industry as [wasteful] goods that no one ever uses anymore. I’ve actually come across factual cases – a bank that used to have Є3 million in budget now has Є300,000; an insurance company said they used to have Є600,000 or Є700,000, and they stopped everything.
“Their CSR manager said ‘Goodies are over.’ ”
International Connections
The CTCO show, which wrapped Thursday at Eurexpo Lyon exhibition center, is held each year in conjunction with printing trade show Salon C!Print.
In spite of concerns with the French economy and slowing industry business, interest in the events was felt as solid overall, particularly attendance by international visitors.
Dozens of cross-borders collaborators attend the two shows each year, including exhibiting suppliers with European divisions, such as PPAI 100 suppliers Showdown Displays and Goldstar. Merchandising experts and distributors eager to spot trends make the trip to France as well.
“The international dimension of the French promotional market continues to grow, creating real opportunities for companies looking to enter or expand,” says Colin Loughran, an Irishman who has been attending CTCO for a decade and has taken on the role of international industry connector and brand ambassador.
“Success in France, however, requires more than just a great product or service,” Loughran says. “Understanding the business culture and nuances is key, and the right local partnerships can make all the difference. Those who invest in the right connections will find the French market both welcoming and rewarding.”
Among those walking the floor at the trade show were Hit Promotional Products’ Chief Merchandising Officer Traci Tarquinio and SourceHIT President Joshua Greenberger, who both say they found plenty of trends to keep in mind for the American market.
- “The decorating is what stood out to me the most,” Tarquinio says. “Very much more innovative and more retail-looking than our traditional shows in the U.S. And all the colors and materials are much more natural and sustainable than in the U.S.”
- “I’m also just blown away by the show – the booth setups and the displays,” Greenberger says. European trade show booths tend to have a larger footprint than their American counterparts, as well as a lounge feel, encouraging distributors to have deeper conversations.
PPAI’s research was a much-discussed topic on the show floor’s media stage, as Mirlit moderated a panel with Confavreux and PPAI Media Publisher and Editor-in-Chief Josh Ellis. Mirlit and Ellis also joined Goldstar CEO Heather Smartt and ASI Senior VP of Content and Global Alliances Michelle Bell for a panel discussing intricacies and opportunities within the American and French markets.
