A Guide to Setting a Promotional Gift Budget
Client gifting is one of those business challenges where there seems like there should be a simple answer, but in…
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4 min
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Veronika Mikec je redna študentka, pisateljica blogov in bodoča revolucionarka. |
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Veronika Mikec is a full-time student, writer, and future revolutionary. |
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This summer once again showed that climate change is no longer a distant threat to the future, but a reality we are experiencing today. The goal of the 2015 Paris Agreement to limit global warming to 1.5°C will almost certainly be exceeded. Nevertheless, limiting further warming remains crucial – every fraction of a degree makes a difference, reducing pressure on people, ecosystems, and the economy.
Climate action, therefore, is no longer merely a political or cultural issue. It is becoming a practical necessity, including for businesses.
Since the signing of the Paris Agreement, the way companies approach sustainability has changed significantly. Sustainability was once not necessarily part of a company’s business strategy; today, it is increasingly becoming an integral part of it. Two factors are driving this shift in particular: consumer expectations and legislation.
Customers want to know how products are made, what materials they are made from, and what impact they have on the environment. At the same time, the European Union and other institutions are introducing an increasing number of sustainability-related regulations – covering everything from packaging and deforestation prevention to ecodesign requirements.
Regulation is often criticized for adding bureaucracy and increasing costs. Yet the fundamental principle of sustainable business is now difficult to seriously dispute. Common rules can help create a level playing field, while sustainability can also provide companies with a way to differentiate themselves from competitors competing primarily on lower production costs.
This is particularly true in the promotional products industry. A few years ago, being “green” could largely be a marketing tool. Today, the situation is different. Certifications, traceability, and transparency are becoming increasingly important, particularly for large companies that are subject to sustainability reporting requirements and include sustainability criteria in promotional product tenders.
Sustainability is therefore no longer primarily about making an appealing claim, but about demonstrating responsible practices. Individual sustainable features have increasingly become the standard and, on their own, are less likely to provide a competitive advantage.
At the same time, the image of promotional products has changed. The industry is moving away from the old stereotype of cheap imported products that quickly end up as waste. Today’s promotional products are generally higher quality, more thoughtfully designed, and made from a much wider range of materials.
A promotional product is no longer simply an item bearing a logo. It is a brand ambassador – a product that should be useful, durable, and carefully selected.
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Yet price has become one of the greatest threats to further progress. Sustainable products are often more expensive. In times of economic pressure, buyers increasingly focus on the lowest price, making sustainability one of the first factors to be sacrificed.
This trend risks undermining the progress made in recent years. If we want sustainable production, we must also accept that quality and responsibly sourced materials come at a cost. Pricing that reflects quality also supports manufacturers that invest in sustainable production processes.
Additional administrative requirements can make the situation even more difficult. Requirements for detailed record-keeping and documentation of promotional products, such as those found in Germany, can increase the bureaucratic burden and make sustainability efforts more difficult to implement.
Another important argument in favor of promotional products is their carbon footprint per advertising contact. A study commissioned by European and US industry associations and conducted by British climate researchers found that promotional products rank just behind outdoor advertising in terms of emissions per impression.
According to the study, they also perform significantly better than many digital advertising formats, which require substantial amounts of energy for data centers, networks, and devices. As the share of digital advertising continues to grow, its environmental impact is becoming an increasingly important consideration.
Promotional products have another advantage: their sustainability story can be made visible and tangible.
The study also found that 74% of consumers would view a brand more positively if they received an environmentally friendly promotional product. For companies, this represents a valuable communication opportunity. Instead of making abstract sustainability promises, they can offer consumers a tangible product that represents a particular value.
Today, companies have many options.
Products can be made from materials such as apple leather, cork, biodegradable materials, and fair-trade textiles. Recycled PET, aluminum, and plastics are becoming increasingly common, as are single-material product designs that make recycling easier.
Sustainability does not end with the product itself. Reduced packaging, repair services, and certifications such as FSC and the Blue Angel are becoming part of the overall offering. Companies are also improving their own processes – from certifications such as EcoVadis, ISO 14001, and EMAS to the use of renewable electricity, solar panels, waste-heat recovery, and energy-efficient LED lighting. Social projects and responsibility towards employees and local communities are also becoming increasingly important.
Sustainability can also become part of everyday lifestyles. Bicycle accessories, vegan sweets, bee-related products, and reusable items not only promote a brand but can also encourage more sustainable habits.
The promotional products industry has changed significantly in recent years. The market is moving away from cheap, disposable items towards higher-quality products in which materials, production processes, certifications, traceability, and product lifespan all play an important role.
For companies, this represents an opportunity not merely to declare their brand’s commitment to sustainability, but to demonstrate it. The real challenge will be ensuring that price pressure and increasing administrative burdens do not undermine the progress that has already been made.
Sustainability in the promotional products industry is therefore no longer simply a trend. It is becoming a way of thinking about products, production, and the relationship with consumers.
The most convincing sustainability communication is not something a company can simply say. It is something it can demonstrate, prove, and – quite literally – put into people’s hands.
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