2014 Hot Markets: Packaging, Pharma Head List
The third durables sector, No. 17 Home Improvements ($797B, +3 percent; with $5.6B to print, +10 percent), will hammer homeowners with direct mail, door-hangers and anything else that nails both the "do-it-yourself" and remodeling buyers. The strongest growth since the housing boom, which peaked in ownership (highly-leveraged you remember) at 69 percent (2004), means print is building back.
Store signage/displays, how-to guides, FSIs, furniture catalogs, contractor vehicle wraps, windshield-stuffers, blueprinting and Made-in-USA labels/packaging; all will be there for the selling!
"Discretionary" is economics-speak for non-durable goods and services; 19 percent of total demand and the third most "durable" at a 90 percent retention rate. Travel/Hospitality ($880B, +1 percent; with $7.5B to print, -5 percent) takes off to No. 10, but print will likely miss the flight. This largest of the six sub-sectors will check in with fewer bound guides, maps, tri-folds and in-room amenities. Hotels (+2 percent) will be up as average daily rates and occupancies increase. Renovated and swapped properties will need makeover print, as will the air/rail travel (+7 percent) and cruise lines (+2 percent) segments, both recovering from mishaps and consumer discontent.
Posters, displays and brochures at travel agencies, and travel loyalty program transpromo, could be turnarounds if put on our print itinerary. Destination parks (+
Fashion ($615B, +Porter, will launch with a cross-media app by Richemont's new in-house publishing group. Print management est très en vogue, as well as cross-branding by fashion publications GQ, Esquire and others with specific stores like JCP, Men's Wearhouse, etc. Inserts, in-store, direct mail and catalog print will be best sold through the fashionista media than to the brands.
Gaming/Wagering ($590B, -10 percent; with $6.3B to print, -10 percent) is No. 12 in '14, but with 100-to-0 odds that print will lose big at casinos/off- and on-track betting parlors (-15 percent). Personalized loyalty direct mail, a former winning hand, is folding, and new/renovated rich-in-print casinos are on hold or on the block. Caesar's, the industry leader, is losing more dough than any of its players (more than $1B last year), and is closing/selling off casinos to bet on online/mobile gaming.
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