In 2018, Counselor Top 40 distributor Geiger (asi/202900) acquired BTC Group, a prominent distributorship based in the United Kingdom. The acquisition proved foundational to what would become Geiger’s international expansion efforts.
Since then, the Lewiston, ME-headquartered company has formed a strategic business unit, Geiger International, that’s focused on growing the distributorship’s presence in global markets. And grow Geiger has: The family-owned firm has acquired six more distributors in the United Kingdom and another in Germany.
of ASI 2024 Power Summit attendees see international expansion as one of their biggest opportunities in the next 3-5 years.
(ASI Research)
“We’ve made great strides in the last five years with our expansions in the U.K. and Europe, and we will continue on into the Middle East and Asia,” says Vicky Kinasz, the U.K.-based president of Geiger International. “I think that distributors who want to operate at a level with global clients will find they need to have a similar approach in order to offer the service that such clients will require.”
Amidst the increasing globalization of the promo industry, Geiger’s efforts are representative of one significant trend that’s poised to continue: North American distributors increasingly conducting business in Europe and beyond, engineered through strategic acquisitions, partnerships and new sales offices in countries in which they seek to service clients.
“Globalization is shrinking the world, and the promo industry is no exception,” says Joseph Sommer, president of New York City-founded distributorship Whitestone (asi/359741), a Counselor Best Place to Work that serves clients in North America, the U.K. and continental Europe. “Over the next decade, I expect more U.S.-based distributors will expand into Europe – and, to an extent, vice versa.”
The reason for this expansion? Necessity, to a degree.
Clients with an international reach have ratcheted up requirements, desiring consistency of service and solutions across geographies. That, in significant part, has compelled the international push of some distributors.
Sommer cites stronger ties between international promo associations as another catalyst that could help propel international expansion, as these help foster cross-border collaboration. There are entities like PromoAlliance, a strategic partnership between ASI in the United States, PSI in the European Union and Sourcing City in the United Kingdom. “Increased collaboration between continental industry associations is a great step forward,” Sommer says.
What’s the Defining Trend of the Next Five Years?
“Promo will continue to consolidate as we become more globalized. The larger companies operating at an international level across territories will do so in a more aligned manner with the use of greater technology and tools available.” Vicky Kinasz, Geiger (asi/202900)
It’s inaccurate to suggest that an overwhelming number of distributors right now are plunging into international waters. The push is coming from a select group who are well-capitalized and well-networked abroad. Challenges like the substantial financial outlay required, necessary expertise and the complexities of regulations involved with conducting commerce in different countries will keep numbers in check (at least over the next half-decade).
“We’re absolutely embracing global expansion, and I expect this trend to continue,” says Jay Deutsch, CEO of Woodinville, WA-headquartered Counselor Top 40 distributor BDA (asi/137616), which operates in the U.K. and Europe in addition to North America. “However, it’s extremely difficult and requires massive investment. Because of this, most distributors will choose to remain domestic or local.”
Still, for those who are bold enough, international expansion for promo companies is a significant opportunity to grow sales and deepen relationships with large clients. Some think it will be a key differentiator.
“There’ll likely be haves and have-nots – those who have the ability to operate globally and those who don’t,” says Jake Himelstein, president of Los Angeles-headquartered Counselor Top 40 distributor BAMKO (asi/131431) and a member of Counselor’s Power 50 list of promo’s most influential people. “Large scale RFPs run by multinational companies will almost entirely be won by those that can operate internationally.”
Where To?
So far, North American distributors have focused expansion efforts primarily on the U.K. and western Europe. Executives say efforts to build up operations and accelerate sales in those markets will intensify.
“Europe will remain a top target in the next five to 10 years,” predicts Deutsch, a Counselor Power 50 member. “They have both a strong retail presence across countries as well as an established backend infrastructure as it relates to sourcing, producing and distributing products.”
Still, it’s not all about Europe. Executives believe more distributors will enter and/or deepen sales operations in large-economy markets in Asia, South America and the Middle East.
Europe’s Largest Countries for Promo Sales
Figures represent total full-year 2023 sales of distributors in each nation. Switzerland, while relatively small geographically and in population, is home to corporate headquarters through which much promo spend transacts, leading to its outsized performance. Check out ASI Research’s full study to see figures for the entirety of Europe
(ASI Research)
“India is a market we’re keeping a close eye on, and it’s clear others are as well,” says Sommer. “While it’s notoriously challenging to penetrate due to complex import regulations, the potential is undeniable.”
BAMKO already has offices in India, China, Brazil, Vietnam and El Salvador – platforms from which it anticipates propelling sales gains. “We see continued growth in South America and India,” says Himelstein. “Our clients seek a uniform solution for their employees and customers worldwide.”
Kinasz expresses a similar view. “Distributors that wish to operate internationally will need a solution that covers major trading zones” not just the U.K. and Europe, says the Geiger executive. She continues: “The Middle East, India, Asia Pacific and regions within South America, such as Brazil, are also important to consider.”
Illinois-based Counselor Top 40 distributor Overture Promotions (asi/288473) made its first acquisition in Europe in 2024, buying Sweden-based distributor Brandon and forming Overture Marketing Group, an international promo business that has plans for more acquisitions and geographical expansion.
What’s the Defining Trend of the Next Five Years?
“I believe it will be sustainability – how do we continue to progress as our colleagues in the European Union have?” Jo Gilley, Overture (asi/288473)
“Our international priority markets,” says Overture CEO Jo Gilley, a Counselor Power 50 member, “reflect where our clients have large offices and require local support: throughout Europe, with a focus on the U.K., Germany, Sweden and the Netherlands, as well as India, Japan, China, Australia and Brazil.”
Required Evolutions
To prosper internationally over the next decade, there’s universal agreement that distributors must continue to bolster the technology-backed solutions that they can provide.
Says Deutsch: “There needs to be heavy investment in enterprise systems that feature emerging technologies, like artificial intelligence and data analytics, supporting client needs, market demands and emerging market trends to deliver more customized, personalized client experiences.”
Gilley says integrated technology that includes the ability to give customers global views of their spend will be critical, while Sommer likewise asserts that clients will expect platforms that make it easy to order, track and customize products globally without friction.
Building on the point, Kinasz maintains that distributors will have to offer tech platforms – backed by powerful cybersecurity bulwarks to ensure safety – that seamlessly integrate with clients, allowing for a single solution system.
For example, she says, it will be ever more pivotal to “offer web shops that can operate across territories and provide assurance to clients so they have a seamless process that helps control spend and brand, consistency of product offer, and user experience, regardless of what region the client is in. Furthermore, the platform needs to link that front end with a seamless, backend operating system that effectively manages logistics.”
Sustainability too will be important globally – especially in Europe, which has more stringent policies and progressive views than the U.S.
Distributors will also be beefing up their physical presence in the markets they serve.
“We see,” says Gilley, “a growing need for maintaining distribution centers.”
Jeff Lederer thinks so, too.
The co-leader of an investment firm that owns New Jersey-based Counselor Top 40 distributor Myron (asi/278980), Lederer notes the distributorship has operated in Europe for decades and has a mature go-to-market strategy. That includes a vertically integrated supply chain that can offer on-continent decoration and warehousing in addition to sales and marketing.
“You can only expand so far in North America,” says Lederer. “Eventually, there’s a need for servicing clients globally. The only way to do that is to have a strong foothold in other countries. There’s a lot of business out there for everyone.”