Point of Sale Materials – Procurement Best Practices & Sourcing Strategies

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Point of Sale Material Market Global Size:

Enhancing brand visibility is becoming very essential for both established and emerging organizations, and this requirement drove the point-of-sale material market to a global size of $46.06 billion in 2023. Also, ELINT Market Research projected that by 2026 this sector will develop at approximately 7-8% CAGR and will assist diverse international businesses to be more competitive in their domains.

Market Definition:

Various worldwide businesses employ promotional and advertising materials like banners, digital screens, flyers, etc., to influence and attract consumers at the time of purchase, and increase their sales. Hence, the point-of-sale material market is continually helping diverse organizations and industries to build immersive shopping ventures, engage customers, and boost their brand visibility.

Point of Sale Material Procurement Market Drivers:

1. Diverse End User Industries –

Key sectors like automobiles, appliances, and electrical/electronics demand POS materials to communicate their product benefits and promotions to consumers, which fuels the expansion of the global point-of-sale material market.

2. Increasing Concentration on Customer Satisfaction –

Multiple businesses operating in the retail industry constantly focus on enhancing customer experience and fulfilling their needs, which causes the POS sector’s development.

Point of Sale Material Market Challenges:

1. Absence of Labors –

When point-of-sale material businesses source POSM from other countries because of the scarcity of skilled workers, it hinders the production operations of POS materials, which is a big challenge for organizations.

2. Fierce Competition –

Another key challenge that POS material companies encounter is day-by-day increasing competition due to online retail stores, which is reducing consumers’ physical visits to the shops.

Point of Sale Material Market Opportunities:

1. Localized POS Supply Sources –

One of the best opportunities for point-of-sale material procurement market intelligence companies is exploring and leveraging local or regional sources for their POS material needs, which helps in reducing various extra costs.

2. Customzied POS Materials –

Businesses are adopting modern manufacturing approaches for providing customized and communal POS material solutions to customers.

Point of Sale Material Market Segmentation:

1. Type of Products –

Point-of-sale materials include different substantial types like advertisement posters and banners, display frames, shelf screamers, pamphlets, electronic displays, etc, which is a key segmentation for the point-of-sale material market.

2. Various Distribution Modes –

Point-of-sale market players employ different channels to distribute POS materials including digital platforms, drugstores, food stores, grocery stores, etc.

Pricing Models in the Point of Sale Material Market:

Point-of-sale material procurement market analysis exhibits noteworthy pricing models that help in settling financial relations between buyers and sellers. The fixed price model allows manufacturers to set predetermined prices for POS material goods that provide predictability to both parties. Another major cost method is cost plus, which allows suppliers to decide expenses depending on costs that occur during production. This approach gives transparency since it links both actual and additional expenses.

Major Supply Regions in the Point of Sale Material Market:

Some of the noteworthy regions have emerged as dominant in the global POS material industry with diverse levels of market shares. In this context, the first country is North America which holds a significant 40% stake and shows that this domain actively adopting innovative POS materials. Furthermore, the European Union possesses 30% and Asia carries 20% stakes, which represents that the retail sector is fastly growing in these territories.

Impactful Cost Component in the Point of Sale Material Market:

The raw material is accounted as an impactful cost component in the global POS market. Thus, any kind of shift in these material prices could hamper the overall POS production cost structure. Moreover, raw material expenses vary in multiple regions including North America which owns an 82% share of raw materials of the total cost. On the flip side, in the European Union and Asian domains raw materials contribute around 80% and 86% respectively to the overall manufacturing expenses.

Price Outlook in the Point of Sale Material Market Procurement Intelligence:

The point-of-sale material market exhibits various price outlooks in varied nations for the second quarter of 2023 compared to the first quarter. Hence, North America experienced a 2-3% increase in POS material prices; contrarily European Union had a prominent rise of 4-5% in costs. Therefore, these two nations illustrate constantly extending consumer spending on point-of-sale materials. Additionally, Asia encountered an average of 1-3% rise in expense layouts, which shows this territory is developing retail sectors rapidly.

Supplier and Buyer Powers in the Point of Sale Material Market:

North American and European Union countries’ supplier power is evaluated as high, which signifies that POS material suppliers are operating as dominant in these nations. Conversely, Asian regions possess lower supplier power, because this domain has a fragmented and competitive market.

Moreover, buyer power for North America is calculated as lower indicating that here, vendors are restricted to negotiate favorable terms with suppliers. On the other side, Europe has medium and Asia has high buyer powers. This fact showcases that these territories have large amounts of retail participants who leverage strong bargaining strength.

Contract Structure in the Point of Sale Material Market:

ELINT Market Research’s procurement market research states that contract structure helps form long-term relations between resin suppliers, converters, and end users. Hence, the contract length for the resin suppliers and converters is shorter usually from quarterly to monthly deals. Additionally, the average agreement between converters and end users stays for 2 to 3 years.

Leading Suppliers in the Point of Sale Material Market:

The highlighted and noteworthy brands of point of sale material market include WestRock​, Sonoco​, DCI-Artform​, Great Northern In-Store​, Ryan Scott Displays​, The Alison Group​, Avante POP Displays​, Dicon Displays Inc​, Ultra Displays​, D7 Merchandising​.