When schools and universities closed campuses this spring and sent students home for virtual learning, the hope was that students and teachers would be back in the classroom before too long. But as the number of COVID-19 cases swelled, state governments made the decision to keep school buildings closed for the rest of the spring. And with so much uncertainty lingering about if, how and when schools might reopen in the fall, promo companies servicing this historically strong sector have been left in the lurch.
According to Counselor’s State of the Industry report, the education market had been the number-one sales sector for promo since 2014 and increased its revenue by over 14% from 2018 to 2019. That’s likely to change this year, with an expected drop of nearly 22% in sales.
Sales Snapshot
Education was the number-one promo sector in 2019, but with a projected 21.8% decline in sales, it’s likely to cede the crown to healthcare this year.
Total Market Promo Sales (Billions)
Projected Year-Over-Year Decline
21.8%
Distributors have felt the pain. Reyna Hernandez, owner of Creative Branding Co. (asi/171045) in Encino, CA, says all her clients’ events were scratched, resulting in losses in the thousands of dollars. For three area school districts, she had back-to-school promos in the works for the fall, like classroom giveaways, before the virus hit. Now, everything’s on hold while they wait for more details on what the next months will bring. Hernandez normally hosts an online store with T-shirts, sweatshirts and beach towels for students at a large Catholic school in Santa Monica; those orders have stopped coming in.
“We get different information from our government week to week,” Hernandez told Advantages in mid-May. “Opening dates change so often. We’re waiting for the final answer. I expect schools will start calling me back in July, before the start of the school year. Eventually, kids will have to go back.”
Kelly Anderson, owner of 185 Promotions & Apparel (asi/287948) in Carmel, IN, has done a lot of work in recent years with schools, particularly elementary and higher education. The younger students usually take part in a number of year-end events, like graduation parties for kindergarten and fifth grade, and awards for reading a certain number of books. Before the virus, Anderson was also gearing up for Greek life orders in time for fall rush at universities. All of those orders are on hold, though she was able to help a few area schools with graduation items.
“We’ve done a lot of personalized yard signs for seniors and teachers,” she says. “We’ve also done parties in mailing tubes, with candy, glow sticks, socks and lanyards. PTO members have been hand-delivering them to the fifth-graders for their graduations. We’ve made a splash with decals on the packaging to give it more of a custom look.”
And of course, Anderson has helped her education clients with PPE needs, including masks and sanitizer for essential staff, like custodians and cafeteria workers who continue distributing food to needy families, as well as students coming back to clean out lockers; much of it was sold blank. “We’re definitely going to see more bulk sanitizer and masks, without branding,” she says. “We’ve actually become more of a pharma supplier.”
For Mike Strycharz, owner of SJS Specialty Co. Inc. in Manalapan, NJ, it’s been a tough few months. His main industry is higher education in the Garden State; now, his clients are struggling. One customer has told him they’re in “dire financial trouble.”
Graduation ceremonies were canceled, though some have asked for gift boxes containing tassels, lapel pins, chocolates, confetti and a congratulatory letter. Another school asked for 10,000 brochures (not related to COVID-19) for Student Health Services. “Any orders for the fall,” says Strycharz, “will have to be cost-effective because of budget cuts.”
Percentage of Overall Promo Industry Sales
On the other side of the country, it’s a similar situation. College Hill Custom Threads (asi/164578) in Pullman, WA, home to Washington State University, has certainly been feeling the squeeze. “Business has gone dark,” says collegiate sales manager Chris Anderson (no relation to Kelly at 185 Promotions). “Colleges have put promo on the back burner. They aren’t sure what to tell us. Athletics have been canceled. College towns have been impacted too, because they rely on students being on campus to keep business going.”
High schools asked College Hill for graduate and student athlete yard signs, and in May, with about a month left of school, reps pitched “porch drops” of fun packages containing apparel, writing instruments and mugs as a gift for students finishing out the year virtually. High schools also asked for graduate gifts, such as T-shirts, sweatshirts, hats and duffels, while colleges have ordered medallions, engraved wooden keepsake boxes and travel mugs. College Hill offered drop-shipping services, but many schools preferred to have the items shipped to their staff, who then coordinated hand delivery when possible.
“They still want to find ways to make it special,” says College Hill’s Chris Anderson. “We’ve been helping them come up with fun products that students will share on social. Clients are receptive. Advisers, deans and administrators really focus on the students.”
In Chris Anderson’s Greek-heavy book of business, he could usually count on two to four shirts a month per fraternity and sorority, not to mention jackets, hoodies and quarter-zips for countless events throughout the year. Parents buy them too. Those were all put on hold. “Summer orientations are big for us,” says Anderson, speaking to Advantages in mid-May. “Some have already canceled for June, but we did do about 9,000 flags for admitted students’ virtual one. Hopefully they’ll be in-person by July, but no one knows. They also don’t know what the fall will look like. They were expecting, say, 5,000 freshmen, but what if not everyone can come back for health or financial reasons?”
There’s one thing that’s certain: the need for PPE. Anderson says he and his team are banking on face protection being part of everyone’s outfit for the months to come, especially since colleges may require them on campus. “We have multifunctional headwear that protects the neck, ears and face, but that can also be a rally towel, armband and spirit wear, so it’s a statement piece with other uses,” he says. “We’re also getting prepared for what professors will need. I don’t think they’ll be in front of the class in full PPE, but we’re trying to be as proactive as possible.”
John Barber, president of CHH Engraving (asi/154871) in Agawam, MA, says he’s using his access to PPE and experience in the higher education market to go after new business. “I’m staying in contact with current clients and introducing myself to schools I haven’t worked with yet, letting them know we have masks,” he says. “Right now, they’re looking for protective items, but I’m hoping there will be more opportunities to pitch other products.”