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Evolving Office Supplies: Trends, Challenges, and Opportunities in a Changing Market

Over the last five years, the office products market has faced significant challenges, with traditional categories like paper and stationery experiencing a consistent decline. The rise of online platforms and changing consumer behaviors have necessitated a shift towards offering comprehensive services rather than just products. Key growth areas include managed print services and break room solutions, which present opportunities for businesses to diversify. To thrive, companies must adapt by understanding their customers' needs, embracing technology, and redefining their value propositions.

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Evolving Office Supplies: Trends, Challenges, and Opportunities in a Changing Market

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Presentation Transcript

  1. Barrie Hayes CEO

  2. Office products Markets over the last 5 years • Challenging • & Changing

  3. Traditional Office products • The traditional areas of Paper / IT consumables/ Stationery Last 2 years continue to decline:- Paper - 2 to 5% decline EOS -3% (switching to MPS) Stationery - 3 to 7% decline Paper 15-20% of sales EOS 20 - 40% of sales Filing 5-10% of sales Areas that are commoditised and suffering decline /change of purchase

  4. Market trends – GDP • 2013 GDP stagnant • 2014 across 28 countries = 1.4% • Euro markets € = 1.1% • Fastest growth 3 Baltic countries 4.4% • German growth 1.7% • Modest growth in Spain / Italy <1% • Non Euro markets:- • Sweden 2.8% • UK 2.2% • Unemployment expected to stay @ 12.2% in Eurozone . In Europe as a whole dip from 11.1% to 11.0%

  5. Consolidation and diversification The last 5 years has seen major change:- • Big box players • Staples focus on Direct delivery and E Commerce (not stores), expanding range 1m sku’s • OD/OMax merge • Antalis & Xerox • Lyreco expanding non - traditional products model • Wholesale - creation of Adveo • New entrants web players Amazon / Shoplet $100m online with huge ranges 250,000 sku’s

  6. Consolidation and diversification • Retail model is challenged within Europe. • New partnerships being made. • Manufacturers will continue to consolidate • Convergence of traditional channels • (web is a driving force) • Manufacturer > Wholesaler > Reseller > User • Manufacturer Reseller • Wholesaler User

  7. Margin pressure • Margins have dropped with the commoditisation of volume products and fast web pricing awareness. • Web entrants have made it more visible and price sensitive particularly in the SME sector. • Customers are more aware of the market due to web / smart phones. • Key in office supplies in Google – 104m results • Its been difficult to pass on increases with low inflation.

  8. Change is here and inevitable Are you selling office supplies ? Or Supplies/Services to the office ? Selling only office supplies will mean a dealer contraction as the web has commoditised this.

  9. Category development (Adjacencies) • Trends are moving from office supplies companies to Business Service Providers & have been happening for the last 5 years. • Europe has been slow to react. Main areas of development:- JanSan – Janitorial and disposables Coffee & Break room – Coffee solutions /catering items MPS – Managed Print Services – major profit provider Promotional products – Overprinted /Marketing

  10. Category development (Adjacencies)

  11. Category development (Adjacencies) • Coffee & Break room services • Office coffee market growing at 15-20% • p.a • Disposable coffee consumables . • Full line service/ support offer • Coffee is a growth market • Sometimes more important than paper choice • Other break room products • Adds value to the AOV

  12. Category development (Adjacencies) MPS – Manage Print Services • Being offered in SME • Complete service machines / toners and paper • Growth market and good margin generator • Single software option to branded manufacturer

  13. Connecting with the customer – Success is profiling • Like a Rubiks cube………………… Age profile Gen X / Baby boomers Millenials Customer type Large / SME Data & mining Technology Logistics offering Contact type Web/direct /retail Your touch point marketing strategy Category offering

  14. Office product companies need to evolve • Success is 3 dimensional • Speed of change is crucial • Albert Einstein said: “To keep doing the same thing and expecting a different result is the definition of madness”

  15. What do we need to ask ourselves ? • What do you offer ? • Products /services • Who is it for? • Target market • What problem are you solving for them? • How do you do it distinctively – USP’s • What is your promise? • Understand yours and how you meet their needs Evolve or go out of business

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