Is it the end of the goody bag as we know it?

In these rather more austere times, corporate freebies and bags of swag have been conspicuous by their absence, writes RHYMER RIGBY

DELEGATES AT Davos earlier this year may have found their welcome a little less warm than usual. The reason? No goody bags.

In place of the normal corporate and governmental bags of swag, they were simply handed a plastic pedometer – the implication being that there should be more walking and fewer limos.

Similarly, at 3M’s self-consciously austere 2009 annual shareholder meeting earlier this month, the bags full of Post-Its and sundry corporate freebies were conspicuous by their absence.

It was, said chief executive George Buckley, no time to be partying and enjoying freebies.

So, has the goody bag gone the way of the £200-a-head lunch?

Will Holloway, founder of All Bagged Up, which supplies goody bags to companies as diverse as GlaxoSmithKline, O2 and Nissan, points out that because the contents of many bags are bulk bought, they usually cost far less than their retail or perceived value. Indeed, if the event’s attendees are a desirable enough demographic, some goodies may even be supplied to companies free. It is here that Mr Holloway says the cutbacks have been felt.

“We’ve had to pull out of some celebrity events because companies are tightening their purse strings,” he says. Nevertheless, he insists the goody bag remains a valuable and value-for-money promotional tool that helps to extend the experience of corporate events: “If you have a branded mouse mat or drink coaster, it might sit on your desk for years.” Annette Scott, chief executive of Promota, the promotional product trade body, says there are two main types of goody bag. The first is the kind a bank might give to a student at a freshers’ fair: “It would be full of low-cost, useful items like pens and notepads and the idea would be to create awareness.”

These are typically inexpensive, but can be very effective. “Research shows that a freebie pen passes through seven sets of hands, calendars last a year and people really do use products like USB sticks,” she says.

The second type are those that are given out at invitational events where the relationship with attendees is much more valuable. “These have a completely different profile and are factored into the conference cost. You can get some very nice gifts – items that cost hundreds of pounds and that are highly personalised,” she says.

Like many companies, Hewlett-Packard uses both types. ‘‘When we do roadshows we might give away goody bags with branded beach towels to members of the public,” says Manuel Linnig, a company spokesman. “But at the last iPAQ launch the goody bag contained an iPAQ.” Although this may seem extravagant, Linnig points out that HP gets its own products at cost and that, “no matter what I tell you about a product there’s no substitute for the touch and feel of it, so it’s worth it”. However, he adds that there are fewer of these events at the moment and they tend to be smaller so the overall goody bag spend is down. He also warns against the dangers of using goody bags in “bidding wars” for event attendees.

“You also have to ask yourself where it ends. iPAQ type phones are as far as I’d go . But if you start trying to out-do your competitors it could easily become ridiculous and get to the stage where you’re giving people laptops to attend events.”

The inclusion of high-tech goodies is perhaps part of a trend in the wider market, according to Claire Johnson, head of events at the events organisers Chillisauce. “Five to 10 years ago, stress balls were all the rage,” she says. “But the value of these is pretty minimal these days. Now it’s USB sticks and, at the higher end, iPods. Recycled bags and green gifts are also very popular – and you probably wouldn’t use a plastic bag as they’re not seen as eco-friendly.”

That said, there are some perennial favourites. People who would never consider wearing a corporate T-shirt still seem happy to walk down the street advertising a conference they once attended on an enormous corporate umbrella.