Gift Guide

The fourth quarter is almost here – and that’s welcome news for distributors who had a slow first half in 2024. Even if their total spend may be smaller due to economic pressure, rest assured that clients who hesitated to buy early on will be eager to use their budget before year’s end.

Of course, veterans of the Q4 rush know the magic doesn’t happen by accident. It requires foresight, planning and proactive communication to make sure that end-buyers get exactly what they want. This year in particular, sourcing prices and other costs are on the rise, so having tiered price-point alternatives for clients (see our showcases below) is more important than ever.

Those are challenges that distributors will eagerly take on this quarter to ensure a strong finish to the year. And that’s where we come in. In our annual Gift Guide, we’ve got the must-know information for the season: buyer mindsets, ideal timetables and the hottest trends. So never fear – here’s what you need to know to make the holidays successful.

Contending With Macro Challenges

Persistent inflation, surging prices across the board and a soft job market have all combined over the past few years to put downward pressure on purchasing ability, including among promo end-buyers, in both the U.S. and Canada. “The economy will dictate what Q4 looks like,” says Scott Hulbert, managing director of ideavation (asi/229801) in Ontario. “Budgetary constraints are the result of high inflation, high costs to run a business and a high unemployment rate.”

In addition, supply chain issues arising from ongoing ship reroutings away from the Red Sea in the Middle East have caused container prices to go up – the average cost to move just one 40-foot container increased from about $1,660 at the end of 2023 to almost $6,000 by the middle of summer (though still a half or a third of the rates from 2022 when supply chain disruption was at its worst).

Mike Fossano, vice president of account services at Michigan-based Premier Communications Group (asi/298496), continues to monitor. “The Red Sea situation is out of our control,” he says. “Hopefully shippers and suppliers find workarounds to mitigate problems. But it’s potentially problematic for us and could be disruptive.”

Brandon Bell, president of drinkware supplier ETS Express (asi/51197), an independent subsidiary of Counselor Top 40 supplier PCNA (asi/66887), says they’re not expecting major disruption due to Red Sea reroutings.

“We do see some small delays on vessel sailings occasionally, but typically only a week or two,” he says. “Not several weeks like in the relatively recent past. Feedback from our carriers suggests they see stability on the horizon. We have seen noticeable increases in shipment costs but nothing we plan to take immediate pricing action on. We’re cautiously optimistic that Q4 will remain somewhat stable and solutions will be found.”

By now, industry companies should be used to dealing with shipping snafus, says Millie Tadewaldt, founder of Brilliant (asi/146116) in California. “It affects everyone equally,” she says. “And it’s not new to have to deal with major supply chain disruption. We did that during COVID.” Lisa Hu, founder and CEO of Lux and Nyx (asi/88973), a supplier of luxury bags, says her promo sales are very dependent on economic conditions and ongoing global uncertainty. But she’s optimistic for the fourth quarter. “Companies still want to make sure their employees are happy, even if they’re cutting their budget,” she says. “That’s not to say we don’t have clients purchasing in the $100 and above range, but I expect many will want something not as expensive that still makes the recipient feel special.”

The Early Bird Gets the Worm (Usually)

What doesn’t change much each year are the logistical hurdles involved in getting gifts into recipients’ hands on time – inventory shortages (particularly of coveted products) and delivery delays can complicate matters. That’s why it’s imperative that distributors start pitching Q4 gifts early to lock in orders.

“Inventory levels become a fast-moving target that can lead to disappointment,” explains Tadewaldt. “Then you’re trying to come up with alternatives. And when we see our go-to suppliers who normally have 24- to 48-hour production times turn those off, it’s always like, ‘It’s getting hot in here.’ We have to make sure that our project plan is a lot tighter during the holidays.”

Chris Faris, founder and CEO of Massachusetts-based Boost Promotions (asi/142942), aims to market Q4 gifting to clients by September. “We keep in constant contact in the summer and fall and remind them they need to use their budgets or they’ll lose them,” he says.

Fossano has a similar plan – start brainstorming in the late summer/early fall timeframe, find out more information from suppliers on what’s feasible, then absolutely get the ball rolling in September and October.

“There are things we can’t control, like the supply chain and inventory,” he says. “Those are the bogeymen we have to be aware of, which is why we start as early as we can to find what’s realistic or what can be a challenge. That way, we can let clients know ahead of time what might be tough to get and offer them alternatives.”

In a smaller market like Canada, distributors also need contingency plans to access the products they need for the gifting process. “We see a lot of delays and backups for boxes we need for kitting,” says Ann Baiden, CEO & founder of Innovatex Solutions (asi/231194) in Ontario. “The limited options lead to higher costs for assembling kits, especially when the client wants sustainable components.”

Even with planning, there could still be delays, and distributors should give customers fair warning. “We sell clients on offering a ‘magical gifting moment,’ rather than a very specific product they may or may not be able to get,” says Tadewaldt. “We also keep New Year’s in our back pocket as another gifting option clients may be interested in.”

Top Trends To Know

This year, despite the economic woes, promo companies anticipate end-buyers will still want brand-name items – though perhaps in smaller quantities than in previous years. Tadewaldt sees demand growing for housewares like powerful mini blenders (Beast Blender is popular in retail) and Fellow Carter mugs that are available from ETS Express. Her team is also planning kitted bundles for home use, with themes like Movie Night and Snow Day that have fun products like paint-by-number sets and cocktail kits, while Baiden is looking ahead to health and wellness kits that encourage self-care.

They’re not alone – home items, especially those that facilitate comfort and relaxation, have stayed popular since COVID due to hybrid and all-remote work weeks. Michelle Monhollen, co-owner of Fully Promoted Centerville (asi/384744) in Ohio, often works with companies like Counselor Top 40 supplier NC Custom (asi/44900) and Funky Chunky (asi/55536) to add popcorn, pretzels and chocolates to gift bundles that include cozy items like tumblers, mugs, hot chocolate mix and blankets. “Food is easy to gift and easy to share,” says Monhollen. “We’ve also done winter kits in duffel bags. Kitting right now is more popular than ever.”

In apparel, Faris says brands like The North Face and Patagonia, both available from suppliers, will be well-suited for e-commerce stores that allow recipients to choose their own gifts. Tech products from Rupt (asi/84203) are big sellers, says Tadewaldt, and tiered gifting programs are a good fit for brands like Bose and Beats by Dre, both available in the industry, says Hulbert.

“Eco products will be hot, as well as slick packaging,” adds Hulbert. “Recipients want the unboxing experience of a cool curated kit. Kitting and fulfillment are game changers. We’ve also noticed a push toward functional gifting, where the items will get used and have a higher price point, versus a bunch of smaller items.”

Hu at Lux and Nyx, a certified woman- and minority-owned business that advocates for gender equity, sees increasing demand for minimal branding on her premium bags – oftentimes, customers will opt for a debossed luggage tag or strap engraving. Many of them are destined for executive gift programs, company stores and kitted sets at socially conscious organizations.

“Clients are digging deep for unique items with a story,” says Hu. “They want to offer gifts that feel curated for the recipient. Listening to end-buyers is so important, and we’re having a lot of conversations with diversity, equity and inclusion departments.”

No matter what clients are asking for, the objective should be the same. “Tie all of the components back to your client’s values and the message they want to drive home,” says Tadewaldt. “All the extra thoughtful details will maximize the gift’s impact.”