HOT MARKETS AT MID-YEAR — ECONOMIC DEFICIT DISORDER
Clothing, footwear, intimate apparel and hosiery (+3 percent) aren’t wearing well for lack of investment value. Printed color catalogs, spectaculars and ROP will be a la mode on heatset web and sheetfed presses during the next few months, along with theme retail signage for digital and screen shops, sizing up to $5B.
The other two contrarians are #21 Food Service ($614B; with $4.1B to print, +5 percent) growing revenues at more than twice the rate of #7 Packaged Foods ($649B; with $9.9B to print, +16 percent).
Push-through packaging is getting more enticing, and pull-through merchandising more aggressive. FSIs, coupons, in-store, outdoor and direct mail promotions of home delivery and themed events will combine shopping with energy savings, nutrition, environment and anything imaginable that multiplies perceptions of value. Look to Whole Foods Market (+28 percent) as the model.
Beverages ($330B; with $8.8B to print, +5 percent) are mixed drinks at #8. As the population ages, wines and spirits (+48 percent) are bubbling while dairy products (-8 percent) are spoiling. Both categories, remarkably, are in preconsolidation and are thirsty for print media to build their brands now for buyouts later. The best, big marketers in-between are Molson Coors (+23 percent) in beers and malts (+5 percent), Starbucks (+22 percent) in coffees, as well as Pepsico (+10 percent) and Coca Cola (+9 percent) in soft drinks (+5 percent).
The second and third well-positioned sectors, but declining in print, are #16 Discount Retail ($1T; with $5.6B to print, -25 percent) and #22 Gambling/Wagering ($436B; with $3.5B to print, -2 percent). Most print salespeople and managements, regrettably, are no match for the procurement acumen in these sectors. Don’t bother trying to sell them unless you have previous experience in these sectors.
Oppositely, two other discretionaries facing impaired consumer spending will buy more print: #15 Travel/Hospitality ($699B; with $5.7B to print, +2 percent), and #18 Entertainment ($646B; with $4.7B to print, +9 percent). Along with #19 Leisure Activity ($186B; with $4.5B to print, -8 percent), heatset web and large-format sheetfed/digital work will reach nearly $8B, principally in bind-in inserts, outdoor, POP/POS, mini-catalogs, FSIs and loyalty programs.
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