COVID-19 Impact Survey Part 2: The impact of COVID-19 on APPA members and the Australasian promotional products industry
APPA has released the results of the second COVID-19 Impact Survey, designed to monitor the state of the promotional products industry.The survey results will help business owners compare their sales results, sales expectations, business confidence and general performance in the industry against their competitors.
While clearly the bulk of the industry was negatively impacted by COVID-19, about one in five member businesses reported an increase or no change to 2020 sales figures compared to 2019.
Key findings of the anonymous survey include:
- 79% reported that sales will decrease in 2020 compared to 2019, whereas 14% of members report that sales will actually increase and 7% of members say that sales will remain the same.
- The majority of members report a decrease in sales of 40% of more (27%) and a decrease of 20% or more (23%) in 2020 compared to 2019.
- In 2020, 28% of members experienced an increase in sales in Q3 from Q2, while 47% expect an increase in Q4 from Q3.
- 59% of members are still on JobKeeper with 20% of members reporting that they will need to stand down employees or make redundancies at the conclusion of this government support.
Survey feedback also highlighted the different experiences APPA members have encountered this year as well as the courage, agility and emphasis of strong business relationships between APPA members as they faced the adversity of the pandemic:
- "To put things simply, sales are about the same, profit margins have held, overheads are way down, so net profit is up. We are on track for the best year in the business ever."
- "This would be the hardest business trading year I have ever experienced in 30 plus years. I am not sure our industry will ever recover. Without the support of the resellers in APPA, the industry will struggle to return to pre-COVID sales."
- "It has shown us that perseverance, remaining positive, using initiatives, showing consistency and maintaining high standards is key."
APPA members can download the full survey report here (you will need to be logged in to view the report).
Thank you to all APPA members who took the time to complete the survey.