5 Questions

5 Questions

Ely Eyal, a manufacturer of hand-decorated glass and ceramics, launched ETS Express in 1985. By chance, he met someone who pointed him toward the promotional products industry. Eyal bought a printing machine and moved production to a facility in Camarillo, Calif., and the company has been growing ever since.

In January 1994, Ely’s son and daughter, Sharon and Taly — who had both worked in the business throughout high school — took over as CEO and CFO, respectively. Since then, ETS has moved into larger facilities in Oxnard, Calif. Corporate Logo sat down with Sharon for some quality coffee talk. It was like buttah.

1 Corporate Logo: How has the industry changed over the years?

Eyal: Technology, specifically the Internet, has been the biggest change in the industry over the last 20 years. Where the industry used to evolve primarily around people and product, the electronic superhighway has changed the way we all do business. The challenge we — as suppliers and distributors — face is to make the best use of the technology that changes daily. While the opportunities it brings are seemingly endless, we cannot lose track of the fact that we are still, and always will be, an industry of people selling to people. E-mails and Web sites are great conveniences, but if our industry is to continue to grow, the human relationships must be at the forefront.

2 Corporate Logo: Any comment on the distributor-supplier dynamic and the pressures of direct selling?

Eyal: The discussion about direct selling has been going on for years. Distributors worry about direct selling; suppliers worry about direct buying (distributors buying from overseas factories). When we started ETS Express, we felt that our growth was dependent on establishing strong, working relationships with distributors. Nothing has changed our minds on this. We are continuing to find ways to strengthen these relationships. Are there more challenges today than before? Absolutely. Is it harder now that it used to be? Absolutely. Are we convinced that the supplier, distributor, end-user relationship will continue to work in the future? ABSOLUTELY.

3 Corporate Logo: Should foreign suppliers be allowed to infiltrate the market?

Eyal: The emergence of foreign suppliers seeking direct access to distributors by either exhibiting at industry trade shows in the United States or by advertising in U.S. publications is something that should be bothersome to both suppliers and distributors. One can only imagine that the next step is for these suppliers to make direct contact with the larger end users. Then, the question arises: Who is really benefiting from all of this? Is it our industry as a whole? Or is it the companies that are selling booth space and the publications that are selling advertising?

4 Corporate Logo: Does the industry need more strong regional shows?

Eyal: Absolutely not. We do not need more, but do we need to make the existing ones stronger? Absolutely. I think that it is not a question of how many shows we do, but rather, how well we do them. We have to reach a compromise of quantity and quality. The industry needs to take a step back and evaluate the situation. If we are not careful, we could become an industry of shows rather than selling.

5 Corporate Logo: What do you think about the emergence of advertising agencies and big brands in the promotional products industry?

Eyal: Basically, what we are talking about here is the evolution of our industry. The reality is that the industry has grown in terms of dollars spent, and thus its image has grown. At the same time, consumers are now requesting brand name merchandise that is available on the retail marketplace. I look at this as a positive. On one hand, it offers merchandise that is being advertised through the media, and it also prods the supplier side of our industry to constantly develop new products in order to keep up with the needs of end users. As to the emergence of advertising agencies in our industry, this is not a new situation. There have always been end users that required the services of an advertising agency in conjunction with promotional products distributors. I have not seen a dramatic increase in this. For the most part, the traditional supplier, distributor, end-user relationship remains as the most viable and effective way of doing business.

Sharon Eyal is the CEO of Oxnard, Calif.-based ETS Express

This past year, ETS sponsored a local soccer team in Oxnard, Calif. The team is coached by the warehouse manager and comprised of quite a few employees of ETS, including the shipping manager. Affectionately named Team ETS, the squad won the league championship just last month. The large trophy now sits proudly next to the fax machine in the customer service department.