HOT MARKETS AT MID-YEAR — ECONOMIC DEFICIT DISORDER
Medical Products/Pharmaceuticals ($360B in revenues; with $12.3B to print, +8 percent) and Healthcare ($>2T; with $7.5B to print, +35 percent) are, respectively, #3 and #16 as buyers. Write the sales prescription: packaging ($7B), as well as digital and other commercial ($>5B each). Taking on healthy living is #17, Personal Care ($302B; with $5.7B to print, +5 percent). Hygiene and sanitary products (+24 percent) lead the sector with heightened fears of contamination and an impending pandemic.
Sales to hair, skin and suncare (+23 percent) categories are marketing to the aging population. Slow in growth, but one-half the sector spend, are color cosmetics, toiletries and fragrances (+7 percent). Deluxe packaging, POP/POS, scratch-off bound inserts and other mostly sheetfed printing could account for nearly $6B in sales.
In tech, Computer Software ($315B; with $10.4B to print, +4 percent), Telecom Equipment/Services ($989B; with $10.1B to print, +3 percent) and Consumer Electronics ($690B; with $4.3B to print, +9 percent) are ranked #5, #6 and #20, sequentially, in print demand.
Hosting/information (+14 percent) is slowing as Google (+86 percent) and Yahoo! (+39 percent) can’t continue their meteoric rise. Print sales to this segment should include catalogs and magalogs, direct mail and loyalty programs.
No surprise, Energy ($>2.4T; with $2.7B to print, 0 percent) is the hottest sector, but low-octane in print spend, tied at #25 with Government/Federal and State. Petroleum (+21 percent), with after-tax profits at 8 to 12 percent of revenues, needs zero advertising, except to assuage the wrath of consumers.
Pain at the pump has, curiously, not yet curbed consumer spending for other commodities. In fact, “now-or-never” anticipatory purchasing (or denial) is rampant in three areas. Foremost is Fashion ($450B; with $8.5B to print, +7 percent) at #10, dressing up in luxury accessories (+10 percent) and jewelry (+17 percent).
Vincent Mallardi, C.M.C., is a the chairman of the Printing Brokerage/Buyers Association International (PBBA) and is a Certified Management Consultant in the paper, printing and converting industries. He is also an adjunct professor in economics. Contact him via email at firstname.lastname@example.org