{"id":27682,"date":"2020-04-07T00:00:00","date_gmt":"2020-04-06T22:00:00","guid":{"rendered":"https:\/\/migrate.psi-network.de\/2020\/04\/07\/what-consequences-does-corona-have-for-the-promotional-products-industry\/"},"modified":"2022-12-12T15:48:39","modified_gmt":"2022-12-12T14:48:39","slug":"what-consequences-does-corona-have-for-the-promotional-products-industry","status":"publish","type":"post","link":"https:\/\/psi-network.de\/en\/2020\/04\/07\/what-consequences-does-corona-have-for-the-promotional-products-industry\/","title":{"rendered":"What consequences does Corona have for the promotional products industry?"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

As Managing Director of PSI, Michael Freter knows the promotional\nproducts industry like no other. In an interview, he talks about the effects of\nthe Corona crisis on the German and European market and praises the commitment\nand solidarity of many PSI members in this unprecedented situation.<\/p>\n\n\n\n

What effects has COVID-19 caused on the\npromotional products industry in Germany?<\/strong><\/p>\n\n\n\n

The spread of COVID-19 has placed an enormous strain on our industry and\nwe are very concerned about the latest developments. Orders are being cancelled\nor postponed and the majority of traders anticipate a loss of income over the\nnext two months. The overall situation is precarious, but especially for small\ntraders as it can cost them their livelihood. For their part, suppliers are\ntaking the necessary steps to protect employees and are laying off staff or putting\nthem on short-time working. Currently, everybody is trying to find a way of surviving\nthe crisis.<\/p>\n\n\n\n

How can this be transferred to Europe?<\/strong><\/p>\n\n\n\n

The impact has been similar throughout Europe and, I would suggest, even\nworldwide. In Italy and Spain, the economies have virtually come to a\nstandstill and only companies essential for survival are still operating. One\nexample of how global trade is currently being massively impeded is the\nexploding cost of air freight due to so many passenger aircraft being grounded.\nBefore the corona virus crisis, it cost approx. \u20ac 4.00 per kg freight to\ntransport goods from China to Germany. At the moment, you can pay as much as \u20ac\n17.00 per kg. The prices of products that used to cost a few cents before the\nvirus are now into double digits. Such developments are having a major impact on\nmargins throughout Europe, resulting in a huge amount of pressure on our\nindustry as a whole.<\/p>\n\n\n\n

How is this expressed in figures?<\/strong><\/p>\n\n\n\n

If, as many fear, turnover in the advertising article industry nosedives\nduring the next two months, this could lead to a double-digit percentage drop\nin overall turnover. This would mean an enormous loss in a market with a Europe-wide\nturnover of \u20ac 14 bn.<\/p>\n\n\n\n

What is PSI doing to support the market\nduring the crisis?<\/strong><\/p>\n\n\n\n

As the PSI network, we are currently providing our members and the\nindustry as a whole with an enhanced range of services – with a daily news\nbulletin, concrete offers of help and other valuable assistance. We are passing\non information about topical developments, offers of help and state subsidies\nin the form of a newsflash almost daily. We are also extending payment\ndeadlines if someone is having liquidity problems due to a lack of orders. We\nare also currently offering products for free that we normally charge for, e.g.\nour Product Finder. We are also currently preparing a supplier availability list\nwhich will give traders a clear overview of which suppliers can currently\nprovide what products. At the same time, we are also passing on any positive\nmessages that we come across. Despite their own difficult situation, many of\nour members are also out there helping other people such as staff who work in hospitals\nor supermarkets. We are supporting this activity by spreading the good news to\nthe market. After all, solidarity is something from which we all draw succour\nat the moment and examples like this give everybody hope.<\/p>\n\n\n\n

What long-term effects will the crisis\nhave on the promotional products industry?<\/strong><\/p>\n\n\n\n

A\nlot of things will never be the same again once the crisis is over. It is\npretty clear that a lot of smaller companies will not survive. Digitalisation\nis currently playing to its strengths and keeping many different business\nmodels above water. Digitalisation definitely needs to become one of the core\npillars of our business alongside our traditional operations In future. I see\nthis as a great opportunity. <\/p>\n","protected":false},"excerpt":{"rendered":"

As Managing Director of PSI, Michael Freter knows the promotional products industry like no other. In an interview, he talks about the effects of the Corona crisis on the German and European market and praises the commitment and solidarity of many PSI members in this unprecedented situation. What effects has COVID-19 caused on the promotional […]<\/p>\n","protected":false},"author":32,"featured_media":3372,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[360],"tags":[],"class_list":["post-27682","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsflash-en"],"acf":[],"yoast_head":"\nWhat consequences does Corona have for the promotional products industry? - PSI Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/psi-network.de\/en\/2020\/04\/07\/what-consequences-does-corona-have-for-the-promotional-products-industry\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What consequences does Corona have for the promotional products industry? - PSI Network\" \/>\n<meta property=\"og:description\" content=\"As Managing Director of PSI, Michael Freter knows the promotional products industry like no other. 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