2022 was a record year for the promotional products industry — growing 13.1% and reaching $25 billion in sales volume, according to PPAI. These big numbers mean big opportunities for promotional product distributors. To increase sales, distributors can explore new products.
Caps are a great way to give the user a practical item while also allowing your brand or organization a chance to stand out with a customized product. Experts offer advice on how to approach the category. They cover everything from customizing and trending styles, to the impact of consumer markets and sales strategies.
What’s Trending
There are several key features to look at when identifying headwear trends. Fabric, structure or style, and features are all important.
Rhyen Campbell is a communications and engagement strategist at Cap America in Fredericktown, Missouri. She says that lighter performance fabrics, especially white and other colors with light reflection, are on trend. “These styles keep you cool and comfortable as we head into summer and are very hot items right now,” she says.
Cap America’s Poly/Cotton Mesh Cap
The style or structure can vary, from the unstructured Dad cap that is so popular to a trucker hat with a structured look. Style or structure is also influenced by the end use, and ultimately customer preferences. What may work in the building industry is not the same as headwear designed for the sports or hospitality industries.
That’s why it’s important to ask the client questions about the environment the caps will be used, sold, or given out.
Consider the mesh backing, moisture wicking properties and hook-and-loop closure versus snap. Also, consider whether you want a flat or curved bill. The No. 1 feature right now, according to Campbell, is one that dates back to the 1950s: “Rope caps are back!”
Tina Liu is the marketing manager at OTTO International in Ontario, California. She says that perforated panels are in high demand, possibly because retail has adopted this trend. “We’ve had several inquiries asking if we stock styles like this,” she says, “and also for custom orders to have holes on the side [or] back panels.”
Ben Roberts, head of marketing for Outdoor Cap, Bentonville, Arkansas, says Outdoor Cap’s design, development, and sourcing teams spend hundreds of hours researching to identify seasonal trends. The company has highlighted a few in its 2023 spring market guide, including styles inspired by workwear, water sports, and vintage/heritage. Workwear-inspired hats feature rugged materials, patching, earth tones, and quilting. For the right sports fan, hats featuring camo prints, direct embroidery and rope details are a great option. Outdoor Cap’s third trending category is vintage/heritage style hats with ropes, patterns, five panels, vibrant colours, and an Americana vibe.
As summer approaches, you can expect to see buckets, boonies and trucker hats as well as visors and sunhats.
“The bucket hat is especially trendy right now, especially with the younger demographic,” Campbell says. “These hats are everywhere on college and high school campuses.”
Liu says the most popular colors for promotional headwear are black, charcoal gray, and navy.
Impressive Imprints
What sets a promotional cap apart is its unique branding — whether it’s a direct-to-film (DTF) transfer, which is gaining more traction, patches, or direct embroidery. When pitching headwear to prospects, it’s important to understand the limitations and possibilities for decoration and design. This includes knowing the artwork and design requirements — from file format resolution to design size. Be sure to reach out to your supplier for a deeper understanding of what’s workable and what’s not.
PVR-100 Visor From Outdoor Cap
“As far as imprints and decorations that are trending, subtle seems to be the trending thing right now,” Campbell says. “We’re seeing a lot of smaller logos placed in the corner of one of the front panels instead of a larger logo displayed front and center.”
Consumer Market Impact
The promotional headwear market is feeling the impact of retail trends. Campbell claims that the consumer market is pushing the promotional industry to explore more trendy and adventurous styles.
“Consumers don’t want safe, traditional caps,” she stresses. “They want what’s new and trendy.” While a basic chino “dad cap” is a safe bet, she says many buyers prefer special touches like corduroy fabric, a rope accent, and ponytail openings. These are more “stylistic choices that might not appeal to the masses, but that definitely have a market,” Campbell continues.
People want to see the same styles in promotional products, especially headwear and apparel. Liu claims that OTTO has observed the effects of perforated panel cap offered by retail brands Nike and Adidas.
Successfully Selling and Understanding the Value
Distributors must have a good understanding of headwear options in order to successfully sell it to their clients. More importantly, distributors need to know the value of headwear. “Headwear can be daunting to sell — there are so many options when it comes to profile, visor shape, closure, fabric, decoration, etc.,” Campbell says. “The No. 1 thing distributors need to know about headwear is that there are very knowledgeable and dependable headwear suppliers out there that want to make it easy for them to sell headwear.”
Campbell’s recommends that all distributors have at least a basic understanding of the product.
Encourages them to use their supplier partners’ information, sales tools, and other resources.
Liu believes that distributors must understand the importance of eye-level marketing.
“It’s usually one of the first things people see and notice,” she explains. “The imprint area is a decent size to be able to show a company’s logo in detail and be noticed right away as it is front and center and at eye level.” Further, she points out the sheer value of one hat — garnering more than 3,000 impressions in its seven-month lifespan with the wearer. “This is pretty good,” she states.
OTTO 6 Panel Mesh Back Trucker Cap from OTTO
Also, keep in mind that limited editions or seasonal sales are important. “When you offer certain products at certain times or encourage your customers to buy seasonally, that can encourage sales,” says Roberts.
Upselling Opportunities
Let’s say a customer still has some money in their budget, or is willing to pay a bit more for an expensive product. These are opportunities to upsell a product. Campbell says that offering free samples is a good way to upsell. She suggests that if a client asks for a certain style, they also be shown an upscale version. “We actually have a great case study about this,” Campbell notes. “A Cap America customer placed a large order for a basic trucker cap. We sent him a i8502 luxury cap with his company logo as a gift for placing such a large order. He showed it to his customer, and they switched from the basic trucker to the Premium Line version with Flexfit technology because they loved it so much — even though it was a noticeable price increase!”
In a similar vein, the good, better and best approach is also available. “Like most products, there is a good, better, best option to choose from, based on budget,” Liu says, adding that the the client’s industry matters. “For example, if our hats are to be sold at a golf [or] We expect country clubs to have a larger budget, and we also sell additional performance features, such as UPF. [a] special performance sweatband that is moisture-wicking, and quick dry.”
Bundling has proven to be a successful upselling strategy. “You can offer a hat, headband, and lip balm or mug,” Roberts suggests. “Offering a bundle is sure to impress, and that cap on top will sell itself. Offering a bundle also increases your overall unit price.”
Roberts reminds distributors of the possibility to upgrade personalization and decoration. Adding a business’s founding year or a sub-logo can elevate a cap’s look while garnering that extra charge.
Headwear is a great promotional product, whether a distributor wants to pitch solutions to an organization or help a client plan a giveaway.
“A branded cap is a walking billboard at eye level,” Campbell says. “It will get over 3,400 impressions in its lifetime with a CPI of less than a tenth of a cent. And with almost 70% of consumers owning promotional headwear, you’re missing out on sales and doing a disservice to your customers if you’re not offering it.”