OPI Magazine FEB 286 B

BIG INTERVIEW

Connecting the

business products world

Paul Yardley, GNS Wholesale Stationers February 2019

INSIDE THIS ISSUE l Concerns over GSA e-marketplace l Private equity deal for ADVEO l Three US dealer groups to merge l What’s hot in 2019? l Micro markets in the spotlight l The evolution of writing instruments l EOPA 2019 preview l Self-service vs customer service

CONTENTS 18 Big Interview Paul Yardley discusses the challenges at Australia’s GNS Wholesale Stationers 24 Hot Topic What will likely give OP executives sleepless nights this year? Consolidation, Brexit, Amazon, tariffs...?

30 Interview Michael Reichhold on the latest developments at Paperworld 2019 32 Advertorial SIGEL presents its new corporate identity and brand 34 Spotlight What are micro markets and why are they – or could be – important to operators in our sector?

Big Interview: Paul Yardley, GNS Wholesale Stationers

Creating a sustainable national office products wholesaling specialist has proved to be somewhat elusive in Australia over the years. That might be about to change following a series of acquisitions in the past couple of years by A$80 million (US$60 million) distributor GNS Wholesale Stationers under the leadership of Paul Yardley who took on the CEO role at the end of 2016.

HOT TOPIC: A HAPPY NEW YEAR?

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42 Category Update Rather than alienate, office technology should aim to make users’ lives easier 44 Vendor Profile

COLOP launches Special Issue its first electronic marking HEALTH & device WELL-BEING

48 Preview: Partnership Europe’s leading OP executives to converge in Amsterdam for OPI’s strategic discussion event 50 Preview: EOPA An in-depth look at this year’s European Office Products Awards

REGULARS 5 Comment 6 News

Special Issue

VENDOR SPECIAL

56 5 minutes with...

Andrea Kenna 58 Final Word Isaac de la Fuente

February 2019

To look forward, one must also look back. 2018 saw industry consolidation ramp up considerably, with Staples Inc and Office Depot in the US snapping up large independent dealers between them. Elsewhere, the UK’s Complete Business Solutions finalised a number of acquisitions over the year, making it one of the country’s largest resellers. The long-running saga in Australia and New Zealand between Platinum Equity, OfficeMax and Winc, meanwhile, was finally resolved in July, while Australian reseller Complete Office Supplies bought Lyreco Australia.

37 Category Update Shifting consumer behaviour and how it’s reshaping the writing instruments category

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COMMENT The OPI team EDITORIAL Editor Heike Dieckmann +44 (0)20 7841 2950 heike.dieckmann@opi.net Deputy Editor Michelle Sturman +44 (0)20 7841 2942 michelle.sturman@opi.net Reporter Lily Elden +44 (0)20 7841 2952 lily.elden@opi.net OPI Special Correspondent Andy Braithwaite +33 4 32 62 71 07 andy.braithwaite@opi.net Freelance Contributor David Holes david.holes@opi.net

SALES & MARKETING Chief Commercial Officer Chris Exner +44 (0)7973 186801 chris.exner@opi.net Head of Media Sales Chris Turness +44 (0)7872 684746 chris.turness@opi.net Director of Growth Services Jeremy Hughes +44 (0)7807 810617 jeremy.hughes@opi.net Digital Marketing Manager Aurora Enghis +44 (0)20 7841 2959 aurora.enghis@opi.net

EVENTS Events Manager Lisa Haywood +44 (0)20 7841 2941 events@opi.net

PRODUCTION & FINANCE Studio Joel Mitchell +44 (0)20 7841 2943 joel.mitchell@opi.net Operations & Production Amy Byrne +44 (0)20 7841 2950 amy.byrne@opi.net Finance Kelly Hilleard +44 (0)20 7841 2956 kelly.hilleard@opi.net

PUBLISHERS CEO Steve Hilleard +44 (0)20 7841 2940 steve.hilleard@opi.net Director Janet Bell +44 (0)20 7841 2941 janet.bell@opi.net Executive Assistant Debbie Garrand +44 (0)7718 660249 debbie.garrand@opi.net

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Starting off with a bang – here’s 2019!

erhaps the time for saying “Happy New Year” has passed anyhow, but there’s simply no time to usher in the new year gently and talk about this year’s unattainable and soon-to-be-forgotten resolutions. What a couple of weeks we’ve had in the run-up to OPI going to press with this issue!

ADVEO being (part) bought by private equity firm Sandton Capital Partners; the closure of Essendant’s deal with Staples Inc being delayed; ACCO Brands in Australia acquiring again; Georgia-Pacific exiting the office paper category; Jeff Whiteway stepping down from SPOT Group; and the three biggest US dealer groups ready to merge – this month’s News section (from page 6) has been a work in progress to say the least.

The gold standard of customer service is NO service at all. [...] Read in context, it makes perfect sense All of the above stories will shake out in the weeks and months to come, and it certainly promises to be an interesting year. With regards to the merger of the US dealer groups in particular, we’re hoping to bring you much more next month. In that context, one of the first things that came to my mind when the news broke was: “Finally! When is this going to happen in the UK; when will the many UK groups combine resources, costs and expertise?” Surely, 2019 is the year for (some of) that too.

But before that happens, are we going to make any progress on Brexit before the crucial date of 29 March and steady the ever-moving goalposts for everyone concerned (and it is, quite literally, everyone affected in some way).

Brexit, other political, macroeconomic and industry issues are also discussed in this issue’s Hot Topic as Michelle Sturman gazes at her crystal ball (see page 24).

Changing consumer behaviour is one of the themes discussed not just in the Hot Topic, but also in other features this month, including our Spotlight (page 34), writing instruments Category Update (see page 37), and Final Word (see page 58).

With the latter in mind, I just love Isaac de la Fuente’s quote that “the gold standard of customer service is NO service at all”. From the outset, it appears like a controversial and even confrontational statement. Read in context, it makes perfect sense.

Have a great month (and, lest I forget, HEIKE DIECKMANN, EDITOR Happy New Year).

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Connecting the

business products world

Office Products International Ltd (OPI) 2nd Floor, 112 Clerkenwell Road London, EC1M 5SA, UK Tel: +44 (0)20 7841 2950

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NEWS

Analysis: GSA commits to e-marketplace model Amazon is on track for a leading role in the US federal government’s e-commerce initiative

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Barring any unexpected roadblocks in the coming months, Amazon appears to be heading for pole position on the US federal government’s e-marketplace programme – also known as the Common Purchasing Initiative (CPI) – that is being implemented by the US General Services Administration (GSA).

When a federal e-commerce plan was first mooted in 2017, it was labelled as the ‘Amazon Bill’ after it appeared to have been tailored to the internet giant’s business model. Then, in March last year, following a strong protest to the original proposals, the GSA had raised hopes of a broad-based approach to the CPI when it said it was planning to implement a programme based on three types of models: e-commerce websites; e-commerce marketplaces; and e-procurement solutions.

However, following a request for information (RFI) and an industry day in December 2018, the GSA made it clear that for the CPI proof of concept and its initial solicitation, it intends to focus solely on online marketplaces. The other two options will be considered “at a future stage of the programme,” said Jeff Koses, Senior Procurement Official at the GSA, during the industry day question and answer session. This has led to accusations that the administration is picking winners and losers before the race has even started.

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WINNERS AND LOSERS At the industry day, Roger Waldron, federal procurement veteran and President of the Coalition for Government Procurement (Coalition), told the GSA: “The concern is, fundamentally, that you are pre-selecting one approach that ultimately is going to define the market.”

In his written response to the RFI, he elaborated: “Congress’s intent was to allow additional commercial e-commerce models the opportunity to

participate in the government’s transition to greater use of commercial e-commerce portals. The Coalition is concerned that, despite Congress’s intent, the RFI documents narrow the focus of the pilot to only one of the three models.”

He also noted: “GSA’s proposal to pilot only the e-marketplace model unduly restricts competition for the proof of concept. By not fully exploring the benefits and challenges associated with all commercial solutions, GSA is artificially and unilaterally narrowing the focus of the [...] pilot based on its non-statutory categorisation of e-commerce models.

“Further, this approach places GSA, rather than the market, in the position of determining winners and losers. As a result, GSA could put the business interests of agency customers at risk and undermine competition in the federal market, two outcomes that Congress clearly did not intend.”

OWNING THE MARKET Mike Tucker, CEO of OP and office furniture trade association IOPFDA, told OPI that he was “concerned that the GSA has now teed this up to give Amazon a head start on the competition”.

IOPFDA has been working with other stakeholders in the independent dealer channel to present the EPIC Business Essentials platform as an e-commerce ordering solution for the CPI. Whether EPIC qualifies as an ‘e-marketplace’ remains to be seen, but the agency’s own definition is: ‘an online marketplace that connects buyers with the e-marketplace provider’s proprietary products and third-party vendors’ products, or in some cases only the latter’.

Certainly, Tucker recognises the importance of being included in the proof of concept phase which the GSA plans to start before the end of 2019. “We believe we qualify as a marketplace and that we have a good story to tell,” he stated. “But if we don’t make the first cut, Amazon will be so far ahead of anyone else and will ‘own’ the federal market.”

[We are] concerned that the GSA has now teed this up to give Amazon a head start on the competition While Amazon has not been referred to in name by the GSA, the specifications in the December RFI point to an Amazon Business-type marketplace, with product reviews, a wide choice of products, dynamic pricing and a number of end-user administrative features and controls that the online operator has introduced over the past couple of years.

If Amazon Business is selected – and it would be a major surprise if it wasn’t – it will not have a monopoly on the CPI. The GSA has committed to running the proof of concept with multiple commercial e-marketplaces. That might mean EPIC, or other more widely known consumer-facing marketplaces such as eBay, Overstock.com or Jet.com.

The proof of concept will enable purchases of commercial off-the-shelf (COTS) items to be made

up to a single order limit of $10,000, a figure that is known in government purchasing circles as the micropurchase threshold (MPT). Purchases made under that are not governed by the same federal acquisition regulations as larger, more complex transactions, and are sometimes referred to as ‘open market’ purchases.

HIGH STAKES Currently, the GSA says it has no visibility or data on this open market spend, but OPI sources have suggested that it could represent as much as $7 billion a year, so clearly the stakes for being awarded a place on the CPI pilot are high.

The GSA views going after this open market, MPT expenditure as a “low-risk environment” and something which, via the e-marketplace model, can be implemented fairly quickly. There is a challenging timetable to the CPI, certainly by government standards, meaning that a working pilot needs to be in place by the end of 2019. One of the takeaways from the industry day was that the time for talk is now over and that the GSA needs to see a solution in action. As GSA Deputy Assistant Commissioner Laura Stanton put it: “Let’s get something out there that buyers can start using.”

Another concern expressed by IOPFDA and the Coalition is that the CPI will eat into the market of businesses that currently sell products to the federal government through a purchasing schedule, or MAS. As Tucker questioned: “How will the GSA limit extensive marketing of this pilot by larger portal providers that can use this test period to grab market share from the schedules programme?”

Waldron is worried that the CPI could potentially create “dual procurement systems” for COTS items, with one set of rules for businesses selling on e-marketplaces and another, more stringent, set for those enrolled on the MAS programme. “With the development of a new channel to the federal market with essentially no compliance requirements below the micropurchase threshold, what is the incentive for contractors to remain with the schedules programme?”

For its part, the GSA says it does not intend the e-marketplace initiative to take spend away from the MAS programme. “We are not targeting the buys going through schedule,” said Koses at the industry day. “We think there is a vast and substantial market of true open market micropurchases out there.”

However, as another GSA official had said earlier in the day, the agency is “not sure” what the impact on MAS holders could be. Stanton added: “Let’s test this effort and acquisition reform at large in a controlled environment before going all in. And then, finally, to begin to understand the potential impacts on other programmes as we begin to use real spend [data].”

The GSA will present its CPI Phase II report to Congress in mid-March (assuming no delays due to the US government shutdown), meaning there is still time for industry stakeholders to get involved.

Stanton ended the industry day by stating: “We want to hear from you, and we take that feedback very seriously.” Throughout this whole process, the GSA has displayed a willingness to listen and take concerns on board. To what extent these matters will find their way into the proof of concept will be revealed shortly.

NEWS

Private equity firm reaches deal with ADVEO ADVEO’s operations in France, Italy and Belgium are set to be acquired by private equity firm Sandton Capital Partners. In a release to the Spanish stock exchange, the European wholesaler confirmed at the beginning of the year that it had received and accepted a binding offer from Sandton for ADVEO France, ADVEO Italy, ADVEO Belgium and ADVEO Global Services for a purchase price of €13.3-€15.5 million ($15.1-$17.6 million).

The offer does not include the subsidiaries in Spain, Germany and Portugal, nor the wider ADVEO Group International entity (AGI). The transaction is subject to a number of closing conditions, mainly related to financial agreements between Sandton and ADVEO’s creditors.

The private equity firm had ten working days to conduct due diligence (due for completion when this issue of OPI went to press), and the transaction must also be approved by FTI & Partners, the administrator appointed to oversee ADVEO at the end of December.

Once an agreement has been reached, Sandton will provide AGI with an immediate €5.5 million bridge loan to boost its liquidity. It also appears that, once the transaction has closed, Sandton will take on approximately €150 million in financial debt.

US dealer groups agree to merge The three leading office products dealer groups in the US have signed a letter of intent to merge their organisations into a single entity. A steering committee comprising representatives of Independent Suppliers Group, Pinnacle Affiliates and TriMega Purchasing Association has been formed, the respective Chairs of the three groups – Tonya Horn, Bruce Eaton and Ian Wist – announced in mid-January.

The role of the committee is to execute the letter of intent and consolidate the three groups into a new organisation, as yet unnamed. The new entity will form a dealer group of approximately 1,000 independent dealers with locations throughout the 50 US states and its territories.

In a preliminary announcement, it was revealed that the work of the steering committee is expected to be completed early in the second quarter of 2019.

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Whiteway to step down

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SPOT Group CEO Jeff Whiteway has announced that he is to stand down from his role at the company. Whiteway will leave his position as CEO during the first quarter of this year and, while he will not be actively involved in the business thereafter, he will be on hand on garden leave. He will also remain a shareholder at the company.

SPOT Chairman Octavia Morley will cover the transition period while the company seeks a replacement. Whiteway has been in the industry for well over 30 years and during that time has been the driving force behind developments at OfficeTeam in its various guises and the creation of the SPOT Group.

In an internal announcement, Whiteway said: “Having been in the business for 33 years, under five private equity partners and with business transforming so rapidly, now is the time for a change in personnel, and therefore a new leader. I firmly believe the plans we have put in place will transform SPOT Group during 2019 and beyond. I leave excited for the future of both OfficeTeam and Spicers.”

IN BRIEF Essendant/Staples deal delayed Final approval for the acquisition of Essendant

by Staples Inc has been delayed due to the recent US government shutdown, which has impacted the work of the Federal Trade Commission.

New director for ISG US dealer group Independent Suppliers Group has announced that Frank Hoard will take up the new position of Director, Facility Supply Channel.

SYNNEX expands management team US-based IT distributor SYNNEX has revealed that Michael Urban has taken on the role of President of the Worldwide Technology Solutions Distribution.

Keeney’s joins Pinnacle Keeney’s Office Supply and Interiors has joined US-based dealer group Pinnacle Affiliates.

Acquisition for ASK UK-based independent reseller ASK Office Supplies has made its third purchase in five years with the acquisition of family-run OP dealer AB4.

BCD partners with FusionPlus UK-based printer cartridges provider BCD Supplies has announced a partnership with UK content specialist FusionPlus Data.

Office Essentials acquires Midwest dealer US OP dealer Office Essentials has purchased the Columbia, Missouri branch of Midwest Office, formerly known as Smart Business Products.

ALSO expands in Croatia European technology distributor ALSO has acquired Croatia-based IT wholesaler RECRO.

NEWS

Georgia-Pacific to exit office paper category US-based paper and hygiene products manufacturer Georgia-Pacific (GP) has confirmed that it will exit the office paper category. In a press release, the company said it was quitting the communication papers business following “an assessment of its long-term competitive position in a declining market”. As a result, it will permanently shut down its last remaining communication papers machines, related converting assets, as well as the woodyard, pulp mill and a “significant portion” of the energy complex at its Port Hudson, Louisiana, facility.

These actions will result in the loss of approximately 650 jobs at the facility, plus a further 40 business and sales-related positions. Around 300 employees will remain at Port Hudson following GP’s announcement that it will continue to operate and invest in the site to support its consumer tissue and towel business.

Port Hudson’s communications paper operations are expected to be closed down by the middle of March this year. GP – which is the fourth largest office paper manufacturer in the US behind Domtar, IP and PCA-owned Boise – had consolidated its office paper assets at Port Hudson after halting production of communications paper at the company’s facility in Camas (WA) in early 2018.

BIRD FEED

@DerwentPencils Pastel drawings without the mess with our Pastel Pencil range. They are ideal for creating crisp, fine lines which are a big help when you’re trying to build up dense fur, like this adorable pair of orangutans.

@TwoSidesUK The European pulp and paper industry is one of the lowest industrial emitters of greenhouse gases and is committed to reducing its environmental impacts.

Sequana suspends trading

Sequana, the parent company of specialty paper manufacturer Arjowiggins, has suspended trading of its shares on the Paris stock exchange. Sequana made the announcement shortly before revealing that Arjowiggins plans to file petitions to open safeguard and receivership proceedings for some of its subsidiaries in France.

These measures will be taken following the termination of the planned sale of its Graphic and Creative Paper divisions to Fineska, which was attributed to poor market conditions.

The company is now planning to petition the Commercial Court of Nanterre (near Paris) to open a preventive safeguard procedure, while some of Arjowiggins’ French subsidiaries will file a petition to open receivership proceedings. The steps will enable Arjowiggins to seek a viable takeover plan while also preserving the interests of its employees, customers, suppliers and stakeholders.

Regarding its subsidiaries outside the country, Sequana is reviewing its various strategic options jointly with the local managers, with the ultimate goal of minimising the impact of the French procedures. The company says it’s confident that it will find buyers for the Graphic and Creative Paper businesses.

90% OF EMPLOYEES BELIEVE IN

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INVESTING

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WILL HELP THEM BE MORE PRODUCTIVE

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Kimberly-Clark Professional’s Jennifer Shaffer recently received the @RubiconGlobal Waste Fit Champion Award for her leadership of the programme.

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NEWS

Lyreco makes PPE acquisition Workplace supplies reseller Lyreco has signalled its intent to become a force in the European personal protective equipment (PPE) market following the purchase of the IEV Group from its Netherlands-based parent company Broadview Holding.

IEV – which has around 360 employees – is a holding company for Intersafe, a B2B PPE distributor, and Elacin, a manufacturer of custom-made hearing protection. Together, they have locations in the Benelux region and France. IEV as an entity was only created in 2018 and comprises the Intersafe, Elacin and Vlamboog brands. Vlamboog – which specialises in safety and welding products – has since been fully merged into Intersafe (explaining the company acronym of IEV).

The purchase is notable for at least two reasons: one, it is the first major acquisition Lyreco has made outside of the traditional office products category; two, IEV will remain as a standalone business unit within the group and not be fully integrated. The current Intersafe management team is staying on and will lead this new strategic business unit within the Lyreco group.

Lyreco entered the PPE space in 2012/13. Since then, its annual sales in this category have grown exponentially to just under €100 million ($114 million). Much of this has been achieved with SMB customers, involving largely transactional sales. What the IEV acquisition does is up the ante as far as Lyreco’s capability to address the needs of larger commercial customers in the PPE segment is concerned.

Albers joins Quantore Long-standing industry executive Dennis Albers has joined Dutch wholesaler Quantore as Head of Purchasing and Category Management. He joins the company from European wholesaler ADVEO, where he worked as European Category Director since 2012, retaining the role he held at Spicers before it was taken over by ADVEO Group.

In 2015, he was promoted to Purchasing and Category Director Europe, where he was responsible for brand strategy for selected categories.

HP opens up MPS accounts

HP Inc has expanded access to its direct accounts for US print premier channel partners. Effective immediately, thousands of managed print services (MPS) specialty accounts that were previously directly engaged by HP will begin to be made available as premier channel opportunities.

Under the expansion, a larger segment of MPS accounts will be served by one dedicated HP lead account manager, who will spearhead print and copy solutions, and one channel lead for MPS. The programme is the next step in the company’s office printing strategy to grow its contractual and channel business concurrently this year; it will cover both the A3 and A4 product lines.

HP said it will focus on concentrated, larger subsets of accounts in both the commercial and public sector markets. In addition, it will engage only the largest enterprise customers in its MPS segment while continuing to collaborate with the channel on this set of clients.

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Staples Canada unveils co-working office

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Staples Canada has opened its new co-working space in downtown Toronto. The Staples Studio was first announced when the company unveiled its new brand identity in December. It provides entrepreneurs, start-ups, small businesses and students with access to a collaborative workspace, featuring lounge spaces, community kitchens, private and shared offices, and meeting rooms that are fully equipped with modern office furniture and technology such as wireless charging and built-in live streaming.

Members will also have the opportunity to use an extended suite of services, including in-house marketing, web design, print and tech services. For now, the Toronto studio is the only collaborative workspace for Staples Canada, but the company is planning to roll out the concept to other locations in the future.

IN BRIEF Bankers Box goes green Fellowes Brands Europe and Bankers Box have partnered with Tree Nation to introduce a Plant-a-Tree programme.

It will contribute to reforestations projects around the world.

Manutan increases digital role European MRO reseller Manutan has promoted Henri Adreit to the position of Chief Digital Officer. Adreit’s priorities will be to enhance customer service for the group’s e-commerce business and improve company efficiency.

Promotions at Exertis UK-based technology distributor Exertis has appointed Jamie Brothwell to the newly created position of Business Development Director, while Alistair Coyne will now lead Exertis’ print division.

Senior GSA official joins IOPFDA US-based Independent Office Products and Furniture Dealers Association has added Jack Williams as a consultant to its team.

Williams joins from the US General Services Administration and will focus on advocacy for the association’s furniture group.

Ellward leaves TOPS Jim Ellward has left OP supplier TOPS. He served as President of the LSC Communications subsidiary from 2013, and will be replaced by Matt Robert, who was previously SVP at TOPS. FSIoffice certified US-based dealer FSIoffice has been recognised as a Women’s Business Enterprise.

NEWS

Market consolidation in Australia

Office products manufacturer ACCO Brands Australia has acquired all brands and distribution rights from fellow Australian vendor Cumberland Stationery.

The purchase includes lines that are both owned and distributed by Cumberland, such as Aurora, Cleanlink, Colourful Days, Dahle, Durable, Falcon, Justick, Novus, Orange Circle Studio, Safco and Wedo.

ACCO Brands said that these brands will complement its existing office products, hardware and jan/san portfolio.

Cumberland’s custom manufacturing division will continue to operate under the current ownership following the acquisition, which is effective 1 February 2019.

Sad losses for UK industry

OPI is very saddened to report that well-known UK industry veterans Dave Fortune and Jim Wilson passed away recently.

Dave worked at OP distributor JGBM for over 25 years, having joined the company in 1981 as a salesman after relocating from Lancashire to Devon. He was subsequently promoted to Sales Director and helped the company diversify into multiple brands and build a national dealer base, utilising the advent of buying groups to deliver UK-wide growth. Dave retired in 2005 and was a much liked and highly respected figure in the industry.

Former Staedtler UK Sales Manager Jim Wilson, meanwhile, enjoyed a career spanning 38 years, during which he saw Staedtler grow from a fledgling partnership with the company’s distribution agent in 1966 to a successful standalone manufacturing and distribution affiliate of its German parent company. Jim retired from the company in 2005.

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Jim Wilson

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Dave Fortune

WHO’S WHO IN OP

Top 100 new entry 2018: Martin Kelterborn, CEO, Offix Group Martin Kelterborn took over as CEO of Offix Group in September 2018. He replaced previous incumbent, Peter Bühler, who remained Chairman of the board until January 2019, overseeing operational management duties and assisting Kelterborn through the transition phase.

Offix Group Managing Director Stephan Iseli will remain responsible for all sales activities within the group.

The change in personnel came ahead of the company’s planned management takeover by purchasing cooperative Papeteristen-Einkaufsgenossenschaft (PEG), which increased its stake in the business from 40% to 80% in mid-January.

Kelterborn joined from DIY and car accessories wholesaler Tegro where he was CEO for ten years. Prior to that he headed the procurement, marketing and sales departments at Migros subsidiary Office World which was sold to MTH Retail Group in Austria in October 2017.

Acquisition for Avery

Global manufacturing conglomerate CCL Industries has purchased direct-to-consumer online business Easy2Name (E2N) for its label maker subsidiary Avery.

UK-based E2N is a manufacturer of durable, personalised children’s labels. 2018 sales for the company amounted to approximately $2 million, with an estimated adjusted EBITDA of $600,000. This is the seventh acquisition made by CCL since it bought Avery in 2013.

Ingram Micro to be sold

The China-based parent company of Ingram Micro has confirmed that it is in talks to sell the IT distributor. In a filing to the Shanghai stock exchange, HNA Group said that due to changes in market conditions it is currently in the early stages of discussions with a concerned company relating to the sale of Ingram Micro.

Although HNA did not state the company involved, sources familiar with the matter have reported that the unnamed business is US-based private equity firm Apollo Global Management.

Ingram Micro is expected to be sold for around $7.5 billion.

HNA reported in September 2018 that it had $3.55 billion of outstanding debt from the $6 billion purchase of the firm in 2016, $350 million of which was due for payment in 2018.

BIG INTERVIEW

Wholesale CHANGES

Former investment banker Paul Yardley has been putting his business turnaround skills to good use at Australian wholesaler GNS

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reating a sustainable national office products wholesaling specialist has proved to be somewhat elusive in Australia over the years. That might be about to change following a series of acquisitions in the past couple of years by A$80 million (US$60 million) distributor GNS Wholesale Stationers under the leadership of Paul Yardley who took on the CEO role at the end of 2016.

These transactions form part of Yardley’s vision to refocus GNS on its core distribution business and bring value to the supply chain. It’s a strategy that has not been without its challenges, as Yardley explained when Andy Braithwaite caught up with him at the OPI Global Forum in Chicago last November.

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OPI: This is your first interview with OPI, so let’s start with a quick recap of your career to date.

Paul Yardley: Sure. I’m not an office products industry veteran by any stretch of the imagination. I was born, raised and educated in the UK and started off my career in investment banking in London, doing ten years of mergers, acquisitions and equity refinancing for corporates across Europe.

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OPI: How did you end up in Australia?

PY: I had a great time in investment banking and learnt a lot, but it was not what I wanted to do for the next ten years of my life. Through a contact I got the opportunity to run an Australian video games business called GAME, that’s how I fell into retail.

GAME had a 100-store Australian business that had had its challenges – my job was to take the business and apply some of the logic I had learnt in investment banking in an actual operating entity.

I restructured the business and spent the next three years running it before selling parts off to a local investor and winding up the remainder. Then I worked for PwC for a while, followed by several other companies as an interim consultant to help them restructure, before I was approached by WH Smith in the UK; the high street stationery retailer was looking for someone on the ground in Australia who could build its start-up operation in the country to maturity and turn it into a material part of the business.

I worked for WH Smith for the best part of two and a half years. When we reached a position where I was happy with what we had done, I was lucky enough to be asked by the board of GNS to take on the CEO role. That, in a nutshell, is how I got into stationery wholesaling.

OPI: There is a common thread of restructuring and quite severe change within the companies you’ve run. I believe that was also the case at GNS? PY: Absolutely. The common threads were either mature or declining industries, companies that had been poorly or mismanaged, and rapid change. All three of those were present at GNS too.

OPI: Before we talk more about the challenges you faced, could you give us a quick overview of the company?

PY: Sure. GNS today is a nationwide wholesaler of office products in Australia. We started off in the 1960s as a cooperative owned by newsagents.

Group Newsagency Supplies was the original name of the company. It was started by four newsagents in a garage after they found they couldn’t source stationery from suppliers for their own stores in a cost-effective way, so they basically clubbed together to create a buying group at the time.

BIG INTERVIEW Paul Yardley

We started off in the 1960s as a cooperative owned by newsagents That grew from one state in Australia – New South Wales – and over the intervening 30-40 years rolled out nationwide and moved away from just newsagents to selling to other independent retailers like post offices and small supermarkets and, more recently, into the dealer channel. We’re a pretty classic wholesaler in that sense.

We have five warehouses around Australia: Sydney – which is where we are based – Melbourne, Brisbane, Adelaide and Perth. We have about 19,000 products on file and north of 10,000 product lines actively ranged. Our annual revenues are about A$80 million.

OPI: How much of your business still goes through the newsagent channel?

PY: About two thirds is still through newsagents and small retailers. They are under a degree of pressure and have been for a number of years, largely due to the rise of Officeworks which has become the principal competitor in stationery retail for newsagents. Its store rollout over the past ten years can be directly correlated with some of those newsagents closing down.

OPI: Aside from those market challenges, what were you confronted with when you took the job?

PY: The principal issues we had in 2016 when I joined were twofold: firstly, a lack of liquidity that gave rise to challenges around inventory and working capital; secondly, the company had suffered some revenue declines over the previous three or four years as newsagents – our customers – had either closed down, reduced the space allocated to stationery in stores and/or shifted to other products such as giftware.

February 2019

OPI: In terms of the ownership structure, is it still owned by shareholders that are newsagents?

PY: Yes. Newsagents traditionally had to be shareholders to use the service, so originally the company attracted shareholders as part of the model.

The business ‘corporatised’ in the early 2000s and became an unlisted public company. That means

we’re subject to all the same reporting requirements public companies are – half- and full-year results, etc – but we are not listed on a stock exchange. Today, we have about 400 shareholders, all newsagents and they remain the core of our ownership base.

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Paul Yardley BIG INTERVIEW

The business had fundamentally reached a position where it couldn’t grow other sales fast enough to offset those negatives. It also had a cost base that was probably too high for its revenue levels and, like many wholesalers around the world in the past few years, had to make significant changes to the business model to address that.

That was the situation when I joined. The first thing we did was refinance the business by using assets we had. We sold off one of our largest warehouses in Sydney which took away the liquidity crunch and allowed us to reinvest in inventory, fill rates and service levels for customers. That, in turn, brought back some of the revenue declines we’d been seeing.

Another initiative was to push much harder into the independent office dealer community. Traditionally, this had been a bit of an afterthought for us, without a coherent strategy or plan behind it, but we redoubled and accelerated our focus into this channel.

The final thing we did was to take out a lot of what I call central admin cost. We reduced management headcount and flattened the business down to be more efficient and cost-effective.

On the back of all this, we have stabilised our revenues. We have continued to build our business in the dealer community and the share of wholesaling into dealers has grown from nothing five years ago to a third.

OPI: Has your relationship with Australian dealer group Office Choice helped with that?

PY: Definitely. Office Choice was a strong early supporter of ours and we came on as preferred wholesaler to its members five years ago. More recently – about 18 months ago – we were appointed

by Office Brands as one of its preferred wholesalers and we’re on the wholesaler panel of ASA too. This has given us a more even spread across the dealer groups.

The big build-out in our commercial dealer growth has been acquisition-related. In early 2017, we acquired a wholesaler in Western Australia called WA Stationery, and that brought a large chunk of dealer business to the group. We purchased V Wholesale, a smaller wholesaler in Sydney, later the same year and more recently, in early 2018, we bought Satex in South Australia.

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OPI: All with the aim to get national coverage?

PY: Yes. If you consider the overall picture, Australia is a country of 26 million people and it had eight office products wholesalers when I came into the business. In my view, that is over-wholesaled; if you look at markets like the US and the UK, there’s a concentration down to a strong one or two, and that’s what Australia needed to do.

As such, a big part of the strategy in 2016 was to aggregate those smaller wholesalers into GNS. In the process, we have taken what was essentially an East Coast-focused operator – Brisbane, Sydney, Melbourne – and expanded it across the country.

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OPI: Is that it for now in terms of acquisitions or do you have more targets?

PY: We would always look if people are in the market to sell, but our strategy was driven by the desire to build a national platform. Now we have that and are

leveraging it; the value would have to be compelling to do something more.

OPI: Traditionally, there have been challenges in the Australian market in terms of the geography and relatively low volumes. How have you lived with that specific situation?

PY: You’re right, it’s a large geographic space to service which resembles, if compared to Europe, an area from London to Moscow. But that’s why we exist and my view it’s an asset, not a liability.

If we can show our worth to enough vendors around the country, then a wholesaler can really play its role in the market, because we can bulk up an order from one supplier with 20 others; it then becomes economic to ship rather than the supplier itself delivering from Sydney to Perth. Ask any manufacturers whether that’s economic for them and they’ll shake their heads in pain.

The only companies with warehouses in Perth today are us and ACCO Brands. That’s it. And as the pressures continue in the manufacturer space around revenues, margin squeeze and the rising cost of doing business, the prospect of farming off the tail of your account base to a wholesaler becomes ever more attractive in my opinion.

We’ve built the network and now we have to make sure it’s productive which means adding volume to it. We are in the process of striking agreements with a number of vendors around that approach. Part of that also comes from the deals we’ve made with Office Brands, Office Choice and ASA, and their members purchasing through us as opposed to other wholesalers.

OPI: What other wholesalers are in the market?

PY: There are still four other operators in the space – two of size and two smaller ones. The two larger ones are Stationers’ Supply in Melbourne and General Stationery in Brisbane. They both cover elements of the East Coast, but don’t have the national platform that we bring to the party, so we certainly see competing with them on volume as a big part of our role going forward.

We’ve not engaged with Amazon as a business and we are wary of hitching our wagon to a business that at some point could eat you (or your customers) In terms of the wholesale market structure, it’s currently only about 15% of an office products dealer’s typical purchase, so there’s plenty of room to grow. Within the other wholesalers, there’s probably A$40-A$50 million up for grabs in that channel and we’re targeting that as well.

OPI: Last year you announced an agreement with Office Choice regarding your Officesmart group.

Can you give more details?

PY: Officesmart members were GNS customers which had mostly started out as retail-oriented newsagents, but had made a successful and productive move into

OPI: Changing the subject, what is your view on the entry of Amazon into Australia? How could that impact the market?

PY: The consensus is that Amazon has had a slow start in Australia – not just in office products, by the way, but across a wide range of categories. My opinion is that eventually, given three, five, seven or ten years, it will reach a successful level of distribution that will allow it to compete.

What does our industry do in the meantime? Well, we get on and reinvent ourselves in the background – at the wholesale, dealer, newsagent and manufacturer level. There’s still plenty of inefficiency in the value chain in the country, so there’s much to do.

If you look at the Amazon selling price for basic items and the net manufacturer cost price for those products, that’s the margin we as an independent channel need to be fit to compete on.

BIG INTERVIEW Paul Yardley

OPI: What’s in it for you still?

PY: The supply of product to those members is still via GNS, so we retain the distribution volume those companies require from a wholesaler.

OPI: What is Amazon’s distribution footprint at the moment in Australia?

PY: It currently has a warehouse in Sydney and one in the process of being opened in Melbourne, but that’s it. Amazon can probably cover 40% of the population within a three-day delivery period. By comparison, we cover 99% of the population within 24 hours. the smaller-end B2B space, and were pursuing that side perhaps more aggressively than the retail side of the business.

Since I arrived at GNS, we have been much more focused on what we want to do and doing it really well. We want to be a great mover of product and a great distributor, rather than a provider of marketing services, an IT company or an e-commerce business.

We had a number of customers in Officesmart that were looking for more help than we could give them to become better B2B dealers, so we had a decision to make: do we want to go into that space ourselves and create that service element for them, or do we want to go and find a partner that could work far better for those customers than we could?

The answer was Office Choice. We entered into a partnership with the group whereby it took on the Officesmart programme, brand, business and many – about 50 – of the members we had. They transferred to Office Choice in July 2018.

OPI: Could Amazon be good for you as a customer, especially in its early days in Australia?

PY: We’ve not engaged with Amazon as a business and we are wary of hitching our wagon to a business that at some point could eat you (or your customers).

We are watching with interest, but that’s as far as it goes today.

OPI: Are you aware of dealers in Australia that are already selling on the platform?

PY: Yes, some do, and they actually use us to fulfil, so perhaps, indirectly, we are benefitting in some small way from Amazon. But I could count those dealers on one hand and I certainly haven’t seen anyone really push office products yet in a serious way on the platform.

February 2019

OPI: When we hear the word ‘partnership’, it’s quite often a euphemism for ‘acquisition’. Can you clarify – did Office Choice acquire the Officesmart brand, for example?

PY: It’s part of a wider partnership, so it wasn’t a pure acquisition in the sense that Office Choice bought the business and then paid us some money.

Effectively, Officesmart members, rather than being supported by GNS in terms of their marketing, catalogues and promotions, are now supported by Office Choice. But the fee income or membership services revenue that GNS originally had, Office Choice now gets. That’s the deal.

OPI: How long before you think this operator will have a national footprint?

PY: On the current numbers I’ve seen in terms of its rate of penetration in Australia, it probably makes sense for Amazon to open in Brisbane next, allowing it to cover all of Queensland within a 24-hour window.

Beyond that, the West Coast and South Australia are smaller markets and probably wouldn’t stand on their own two feet just yet.

One of the challenges we have with Amazon as an industry is that its bottom line requirement is different to most of our participants. There is no prediction I’ve seen about how fast it will roll out. But we do look at the Canada experience as a market that is similar in geography and in population distribution to Australia, and we use that as the best view we have on how the market might evolve in Australia.

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Paul Yardley BIG INTERVIEW

OPI: Can dealers really be cost competitive, especially when you look at the size of Winc, which is considerably larger than even COS? PY: My sense is that they’ve always struggled to compete on a pure cost basis across any account.

What they are very good at is relationship building and service levels. If they can stack themselves up well on those points to a contract, then, yes, they could win.

Keeping it is the key after that, but I am optimistic.

The other point about the market structure is that we’re also seeing consolidation on the supplier side.

ACCO Brands combined with Pelikan Artline two years ago [and, at the time of going to press, had just bought all brands and distribution rights from fellow Australian vendor Cumberland Stationery]; Hamelin has come in and purchased Bantex in the past 12 months; and we’ve also seen a couple of closures of small suppliers in the past year or so.

The local Australian market, in terms of supplier base, is shrinking and that’s forcing both the dealer groups and us, as wholesalers, to look at the manufacturing community which we need to be robust and strong.

There’s opportunity for us with dealers servicing multisite customers or national accounts

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OPI: Let’s talk about consolidation. The Complete Office Supplies (COS)/Lyreco and the OfficeMax/ Staples deals – have they had an impact on either your newsagents or your commercial dealers?

PY: They haven’t and won’t affect the newsagents at all. In some ways I see what’s happened in the market as an opportunity for dealers because across those four businesses there was a large amount of loss-making volume that’s falling out now as they come to re-price. This is being looked at certainly, if perhaps not being picked up yet by dealers from the groups, and could lead to incremental business for us as their wholesale partner.

I also think there’s opportunity for us with dealers servicing multisite customers or national accounts.

Dealers can look after one site really well on their own, but it’s very hard to do more when you haven’t got the distribution power. As our drop-ship capability grows, a dealer could pitch for any multisite operation using GNS as its distribution partner.

I know that all the groups get phone calls from larger customers looking to have a third bidder on a tender panel. They have Winc and COS, but they need a third to meet procurement requirements, so there is potential there for the groups to play in that space too.

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OPI: Is that a genuine opportunity or just to satisfy the requirements of the tendering process?

PY: Hard to say, but from a pure logic perspective, if volume in the market is available at a profitable price point for the contract stationers, on the cost base the dealers operate on, there’s every chance they could win that business and make some money out of it.

OPI: As you all rely on each other to some extent?

PY: Australia is probably the best-balanced market globally I’ve seen. The wholesalers can’t drive the market as we’re not big enough. There are two strong buying groups in Office Choice and Office Brands which pursue their agendas, and the suppliers are now consolidating up to be strong enough to push their plans too. We are a triangle and pretty well-balanced, but clearly all of us need the other two parties to be strong to continue.

OPI: Finally, how have you found the stationery/ office products industry?

PY: For a start, it’s an industry that’s probably gone through more change in the past two years than I was expecting. The rate of change both in Australia and globally has been hard and fast and I don’t see that slowing down or stopping – we probably have another two years of really interesting transition to go.

The other thing I would say is that in industries that are in change and transition, people tend to hold onto the past quite robustly. Change unsettles people and makes them nervous, but we can’t move forward and face the future if too many participants are unable to let go of the past.

For more exclusive content from the interview, visit the February issue in the Magazine section on opi.net.

OPI: I guess there are dealers of a certain age...

PY: ...who are looking forward to retirement, to be frank. And I can understand that they don’t want to take a huge risk.

All of us – dealer, dealer group, manufacturer, wholesaler, supplier, newsagent – have challenges in our businesses. One of the biggest ones at GNS in the past two years has been cultural. It’s been about getting away from a ‘we’ve always done it this way’ mentality to a ‘we must embrace this’ mindset. We have to do things a bit differently and in a way that is going to get us going in the future, not stuck in the past.

On the non-business side of the industry, I’d say generally there are very nice people in it, it’s very social and probably one of the more fun industries I’ve worked in. I enjoy it.

HOT TOPIC Predicting the future is always a fool's errand, but OPI’s Michelle Sturman gazes into the crystal ball for 2019…

A HAPPY

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ven futurists can get it wrong when it comes to predicting what the game-changing shifts are that will change our world. But there are some trends that are fairly reliable if you put them under a wide enough umbrella – the growth of ever more powerful technology, for example, customer buying habits or changes in the way we work. Drilling down into specifics is a little trickier, but last year already set the wheels in motion to make some reasonable forecasts for 2019.

The OP sector is well-acquainted with disruption, having to deal with it on a near-constant basis due to microlevel industry topics such as consolidation, cost reduction, supply chain management and margin pressures. These are perennial issues. The OPI Advisory Committee threw a number of others into the mix for 2018/19 including the viability of the current business models of European wholesalers and traditional buying groups, the number of new buying channels, and continued price hikes, particularly for copy paper. Of course, Amazon Business must be mentioned (see opi.net poll page 26), not only because of its rapid growth and launch into new countries, but its courting of dealers and significantly, chasing government and enterprise contracts (see News, page 6, and Hot Topic, OPI December/ January 2019, page 22).

There’s also no escaping the reality that the office supplies sector has the added pressure of having to continuously adapt its business to accommodate shifts in the workplace, which are influenced by some of the most fundamental global changes that affect how we work and live.

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LOOKING BACK To look forward, one must also look back. 2018 saw industry consolidation ramp up considerably, with Staples Inc and Office Depot in the US snapping up large independent dealers between them. Elsewhere, the UK’s Complete Business Solutions finalised a number of acquisitions over the year, making it one of

New Year? the country's largest resellers. The long-running saga in Australia and New Zealand between Platinum Equity, OfficeMax and Winc, meanwhile, was finally resolved in July, while Australian reseller Complete Office Supplies bought Lyreco Australia.

But it was the news from the US involving the merger of the two biggest wholesalers Essendant and SP Richards that had many in the industry rattled.

Subsequent revelations detailing an eventually successful bid for Essendant by Staples Inc escalated concern. And now the industry is on tenterhooks waiting to see what will transpire when the deal goes through – barring any regulatory surprises, of course. As a result of all this, the Essendant/SP Richards/Staples Inc saga dominated OP headlines for much of last year, while the continued woes of European wholesaler ADVEO dominated opi.net news for the latter part of 2018.

LOOKING AHEAD 2019 will see a continuation of Staples/Essendant, and ADVEO stories. As this feature was being written, news had just come in regarding a delay in the Staples Inc purchase of Essendant due to the US government shutdown which had impacted the work of the Federal Trade Commission. Essendant CEO Ric Philips did say, however, that he was confident the deal would still be finalised in Q1.

An update on ADVEO saw a private equity firm acquire the wholesaler’s operations in France, Italy and Belgium. And in mid-January, US dealer groups Independent Suppliers Group, Pinnacle Affiliates and TriMega Purchasing Association announced a Letter of Intent to consolidate into one organisation. If the rest of 2019 continues the way the year has started, the sector is in for a roller-coaster of a ride.

The following represent a snapshot of the trends that are most likely to exert a significant influence on the business supplies industry over the coming year and beyond. While they will already be familiar to OPI readers, this is the year they will really have an impact on our lives.

The two-year chain of [Brexit] events has taken its toll on many businesses The two-year chain of events has taken its toll on many businesses, especially in terms of preparations for a potential no deal. Whatever the outcome, there are likely to be major implications, not just for the UK but for any trading partner. In a no-deal scenario, the UK will leave the European Union on 29 March without a trade deal, reverting immediately to World Trade Organisation rules.

The UK government has been busy releasing ‘what to do if’ documents in the event of a no deal, including how to deal with imports and exports, new customs procedures, and retesting products for EU compliance as UK-based bodies will no longer be recognised on the EU-recognised conformity assessment list. There are also customs tariffs and VAT on EU-imported goods to contend with, and for any businesses thinking about mergers and acquisitions, they will have to comply with both the UK and European rulebooks. And this is just the start.

While the adage ‘preparation is key’ is usually sage advice, in this case it is a moot point as no one knows what to prepare for until all the political wrangling is done. The world may find out on 29 March, but then again, it may not. OPI will cover the impact of Brexit on the OP industry in depth as and when the UK leaves the EU.

TARIFF TIFF The stand-off between the world’s two superpowers – the US and China – has already led to tariffs being slapped on billions of dollars of imports in both countries, leading to market volatility and concerns for the global economy. At the time of writing, meetings were taking place between the two countries over the continued trade war. The talks were the first to take place in 2019 after a 90-day truce was called in December last year. By all accounts, the talks went well. Let’s hope it stays that way, although President Trump currently has his hands full with a protracted government shutdown, with no end in sight.

Over the past few months, the US OP industry has voiced its concern over the tariffs (see Hot Topic, OPI November 2018, page 26), and if a new deal isn’t reached before 1 March, Trump will go through with raising tariffs on a further $200 billion worth of Chinese goods by another 15%, taking the total tariff to 25%.

The prospect of these new tariffs being implemented is a concern not just for US and China, but threatens the health of the global economy, with fears being voiced already over a worldwide economic slowdown.

February 2019

ENVIRONMENTAL CONCERNS While Brexit and the tariff war have stirred up political and economic strife, 2018 was the year the global public rose up and demanded that something be done to stop single-use plastic clogging up landfills and polluting the oceans. Many large corporations have already taken action and announced steps to reduce the use of single-use plastic.

As the media hype went into overdrive on this particular issue, sustainability as a whole became a key phrase in the corporate business world. And this year, environmental awareness is likely to filter down to SMBs and they will be expected to seriously commit to some form of ongoing sustainability.

Whereas ‘green’ up to now was a ‘nice to have’ and often used as a branding and marketing tool, it has become a ‘must-have’, and for good reason. The Intergovernmental Panel on Climate Change proffered stark warnings of devastating climatic consequences should the world not keep CO2 levels under control.

Globally, increasing bouts of severe weather have cost billions and severely disrupted businesses.

The recent COP24 meeting in Poland to discuss how to make the 2015 Paris Agreement a reality, will eventually result in new government mandates that set business targets for cutting CO2 emissions.

But in today’s global climate (no pun intended), it makes business sense to go greener in every way possible as customer buying habits and brand loyalty – especially from millennials and, increasingly, Generation Z – shift to those companies that embrace sustainability in meaningful ways, such as reducing plastic and non-recyclable packaging, increasing product recyclability, and using clean transport and technology, such as portable power, etc.

HOT TOPIC The Issues of 2019

DEAL OR NO DEAL? It would be completely remiss to discuss 2019 and not reference Brexit. Attempting to keep up with the rapidly changing negotiations and UK government plans is impossible here, but as OPI went to press, there was still no clarity on what the final outcome will be, only that a no-deal Brexit was still on the cards with parliament still to vote on Theresa May’s deal.

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The issues of 2019 HOT TOPIC

WELL-BEING IN THE WORKPLACE It's not just the health of the planet that has hit the headlines; health and well-being in the workplace has also been a hot topic. Employee health and wellness continues to be a growing trend, particularly as it is a means of attracting and retaining staff in a time of high employment.

This escalating awareness by businesses of health and well-being at work is certainly having an impact on our sector. There is the growth of the ergonomic furniture and accessories category, for instance, along with new areas of focus such as lighting and healthy breakroom snacks (minus the plastic utensils, of course).

The increased cognisance of mental well-being and the desire to redress the balance between work and play is leading to the rise of co-working spaces, remote working and flexible working. This is creating a burgeoning market for innovative presentation and communication tools, for example.

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The number of connected devices in 2025 is expected to reach 22 billion

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DATA PROTECTION AND CYBERSECURITY The surge in electronic communication over the past few decades has led to the necessity to protect the masses of data that is being produced. In May last year, the European Union launched the General Data Protection Regulation (GDPR). Setting new standards in data security and protection, it is also being used as the blueprint for other countries to implement their own regulation.

There is still a significant number of companies not fully GDPR-compliant, but the increase in cyberattacks and data breaches will ultimately propagate acceptance of data protection practices.

While it is unlikely there is any large corporation without a cybersecurity policy in place, the same cannot be said for the majority of small businesses.

OPI has covered cybersecurity in the past (see Hot Topic, OPI September 2018, page 20), but with the expected jump in the adoption of the Internet of Things (IoT) and connected devices, the prevention of cyberattacks becomes ever more important.

5% Security experts predicts 10% that although the number of ransomware attacks will decline this year, there are other threats that are liable to see an increase, 14% such as cryptojacking or currency mining and spear phishing.

Cryptojacking is the unauthorised use of a computer or device to mine 17% cryptocurrency. While these events slowed last year, likely due

opi.net poll

Which of the following is the hottest issue in the OP industry right now? n Amazon Business n Tariffs n M&A n Brexit n E-commerce n The economy

36%

17%

to the volatility cryptocurrency experienced, this year is expected to see a rise of this type of cyberattack.

Spear phishing is a form of phishing manoeuvre, but it is specifically targeted, usually at an individual or a number of employees at a company. The attack uses personal information often gleaned from a previous breach to customise emails that contain malicious links or attachments.

CONNECTED THINGS Artificial intelligence (AI) and machine learning will be progressively adopted in the fight against cyber crime. This is good news for cybersecurity as the world pumps out more and more data. According to IoT Analytics, the number of connected devices in 2025 is expected to reach 22 billion. Additionally, global services firm IDC predicts spending on IoT will reach $45 billion this year and surpass $1 trillion in 2022.

These developments will be boosted by the deployment of AI and machine learning, although we won't see AI robots sitting at office desks anytime soon. However, there’s no doubt that the use of AI – running in the background in applications such as chatbots – will rise over the course of 2019.

This will be coupled with the growth of smart cities which, according to market research analysts Frost & Sullivan, will create business opportunities to the tune of $1.5 trillion by next year. The Smart Cities Council defines smart cities as those that "incorporate digital [particularly IoT] technology across all city functions", saying that they will have a profound effect on the way we live and how and where we work.

To make all of this a reality requires the next-generation platform to correlate the data from billions of connected devices. And it is here – 5G mobile networks are already being trialled in select areas worldwide although the official global rollout isn’t due until 2020.

This year, however, will see the start of pilot schemes for services that will benefit from the high-speed connectivity for mobile devices. With eMarketer predicting that 73% of e-commerce transactions will take place on a mobile device by 2021, now is very much the time to sort out that m-commerce strategy if you haven't got one already.

INTERESTING TIMES AHEAD Given the substantial shifts in the global economic and political landscape, the continued rise of smart technology, and the consolidation in the broad business supplies industry, it’s going to be one very interesting year.

INTERVIEW

PAPERWORLD in FOCUS

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ith an expanded complementary programme and a reshuffle of the hall layout, Paperworld is on track for a successful 2019 show, despite the Plaza concept from previous years being discontinued. OPI caught up with Messe Frankfurt Director Michael Reichhold to discuss the latest developments at the fair.

OPI: What are your hopes for Paperworld 2019?

Michael Reichhold: First of all, I’m very happy about the high number of registrations we’ve had. We expect over 1,600 exhibitors from both Germany and abroad to attend this year’s expo, meaning the halls will be fully occupied. In terms of visitor numbers, we’re predicting a similar number to last year, which was almost 33,800. In addition, the developments in the complementary programme will provide added value to those attending.

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OPI: How will the new hall layout impact the event?

MR: The reshuffle of product areas will be the most notable change. The Remanexpo area is moving from Hall 6.0 to Hall 5.1, which will link it directly to the main passageways across the fair and exhibition centre, making it more accessible to visitors. In the stationery segment, the gifts, packaging and festive occasions categories are relocating to Hall 3.1. This means that all lifestyle products for the stationery trade will be found in the same space.

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OPI: As you’ve just alluded to, you have expanded the complementary programme for 2019. Where in particular is the focus this year?

MR: Each year, we mix up this programme to try and represent developments in the industry and reach new target groups. For example, flexibility will be the focus of the 2019 Future Office show, while Paperworld Trends will look at the latest colour, materials and styles for the coming season.

We have also created a new Future Learning event for this year’s fair, which will take place in Hall 4.0.

This will feature specialist talks on the digitisation of learning, how to design attractive classrooms, and learning at an international level.

OPI: Given that it’s an international fair, will all the sessions be delivered in English?

MR: All lectures will be translated into English. Visitors get a headset at every forum and everything will be translated simultaneously. It’s only in the Future Learning area that I’ve just mentioned where there will be no translation, as the topics are more aimed at a German audience.

OPI: Paperworld Plaza, which has run twice so far – in 2015 and 2017 – will not be repeated this year. Why is that? Do you have plans to replace it with something else?

MR: From 2020, we want to expand the concept through the Office Village. This will offer all manufacturers a fully-equipped, easy-to-individualise stand at a fixed price. Connecting to this area will be lounges, meeting rooms and a catering zone. We are adding this to provide exhibitors with a simple and customisable presentation area and to make it easier for them to plan their time at the fair.

From 2020, we want to expand the [Plaza] concept through the Office Village OPI: What are you most looking forward to?

MR: I am always eagerly awaiting the first day of the fair. When you spend so much time on preparation, it is very exciting to see how it looks live. I am particularly looking forward to the new Hall 3.1, which features the stationery exhibitors, as well as the varied complementary programme. We have invested a great deal in planning these areas and I cannot wait to see how exhibitors and visitors react to it.

Paperworld takes place from 26-29 January 2019 in Frankfurt, Germany.

OPI: What are your expectations for the industry overall in 2019?

MR: In terms of general macroeconomic conditions and the global market – including factors like trade restrictions, Brexit, import-export duties and political situations – many countries are looking at a challenging future. Given this background, it is difficult to provide a forecast for the industry. As Paperworld mirrors world trends, I am hoping for stability in 2019 and a successful business year.

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Changes are afoot at SIGEL as the company presents its relaunched strategic corporate identity, including a new brand and a range of product solutions that will be introduced at Paperworld

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erman OP manufacturer SIGEL has been through an intense journey, during which it has completely restructured the company’s direction. Its ‘Next’ strategy is geared towards sustainable success and growth, a direction that’s come about in direct response to the digital changes that are transforming the world of work.

As SIGEL Holding Managing Director Dr Joachim Roth says: “In the future, work will be more flexible, more team-based and more experimental. New, agile working methods will be an integral part of this. What’s more, companies are adapting their working environments to these changing forms of collaboration. We are well-prepared for these big developments here at SIGEL and have consistently realigned our company to the new requirements of tomorrow’s world of work.”

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THE IMPORTANCE OF PEOPLE In a world that is becoming increasingly digital, people play a more important role than ever. The motivation, creativity and productivity of staff, along with an inspirational working environment, gives companies a decisive, competitive edge. Based on a deep understanding of its customers’ needs, SIGEL has made it its goal to develop beautifully-designed solutions that will make work simpler, more pleasant and more successful.

In order to meet demand and further strengthen its innovative power, SIGEL has set up its own

innovation hub in Munich, about 100 km from its headquarters in Mertingen in the south of Germany.

“This is how we manage to combine our strengths as an established, successful family business with the knowledge, methods and thought processes of the new start-up culture,” explains Roth. Digital services and products play an increasingly important role in companies. SIGEL has already tapped into this demand and in 2017 launched Smartpro, a digital print portal that allows businesses to produce custom-printed material.

Above: The Sound Balance acoustic elements from the SIGEL range are simple to install and solve the problem of disruptive noise in open plan offices

We [...] have consistently realigned our company to the new requirements of tomorrow’s world of work The SIGEL brand is depicted in a way that clearly reflects its new strategic direction. Says the company’s Head of Marketing Holger Ellerbrock: “Our new company logo contains a circular image that emphasises our aspiration to give impetus as waves of inspiration. The new mission statement ‘Work inspired’ also expresses our vision of better ways of working thanks to SIGEL.”

ADVERTORIAL SIGEL

PAPERWORLD LAUNCH The first products reflecting the new company direction are being launched at Paperworld this year. Under the umbrella of its Work:mode category, SIGEL presents its meet-up agile board system, which is tailored to the requirements of modern working methods.

Whiteboards and pinboards allow for spontaneous, hassle-free meetings, even when no specific rooms are available. They are sturdy and of high-quality, yet light and flexible to use, facilitating goal-oriented teamwork – anywhere and anytime. A wide range of accessories further supports creative work.

Right: Dr Joachim Roth, Managing Director of SIGEL Holding

With this new positioning as a solutions provider in the contemporary world of work, we are continuing our successful journey As part of its ‘Meet up’ concept, SIGEL continues on its path of creating innovative board solutions for collaborative work. The beautifully-designed range of Artverum magnetic glass boards, for example, has already established itself as highly successful for the inspirational exchange of ideas during meetings and projects as well as for teamwork.

Overall, the company’s Work:flow category stands for faster, simpler work processes. A good example for this is the aforementioned Smartpro. What makes this digital print portal special is that the tool is tailored towards each individual customer, precisely adapted to its processes and systems. This makes it easier for

Below: Meet up, SIGEL’s complete board system, is geared towards agile working

staff to work with standardised processes, saving the company time and money.

The latest development at SIGEL is part of its Work:space segment and solves a perennial problem in open plan offices: the increase in noise disturbance. The Sound Balance acoustic elements from its range are highly-effective sound absorbers and can be integrated into any room, flexibly and modularly. They are simple to install and irrespective of whether customers choose the wall panels or acoustic walls, SIGEL Sound Balance optimises sound levels, increases employees’ sense of well-being and contributes to higher motivation in the workplace.

The sale of these new products and services is supported by highly-effective marketing activities consistently geared towards the customer journey.

February 2019

FUTURE-PROOFING THE BUSINESS As a result of its new strategic direction, SIGEL is becoming not only an integral part of the new work culture, but also its ambassador. Its innovative solutions help people and companies to achieve top levels of performance as well as making each individual’s work more valuable.

Roth reiterates the company’s strong impetus for change: “Ever since the company was founded in 1947, SIGEL has always reacted to trends at the right time and has never been afraid to take a new direction. With this new positioning as a solutions provider in the contemporary world of work, we are continuing our successful journey while at the same time setting in motion our company’s next important stage of development. With more than 70 years of experience and with the future clearly in our sights, we are taking advantage of the opportunities provided by the digitisation of work to position ourselves even more strongly as an expert, innovative brand manufacturer in the years ahead.”

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SPOTLIGHT

MICRO MARKETS under the microscope

The convenience services industry is huge and has broad – if perhaps emerging – appeal to the office products sector. OPI takes a look at this burgeoning segment and micro markets in particular

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icro markets is a term that appears to be popping up more regularly in our industry right now, with some independent dealers in the US dipping their toes. But ‘dabbling’ is by and large as far as it goes for now in this sector. The potential is considerable, however, if operators can get round the myriad of challenges and risks.

So what’s a micro market? It’s part of the convenience services industry (CSI), a segment of the broader foodservice category. It focuses on three sub-sectors. The first is the traditional vending machine – the self-service device that automatically dispenses a food or drink after payment is made. This is a segment that the OP fraternity has talked about for over 20 years, but it’s actually now in gradual decline within the office work environment.

Second is office coffee services (OCS) which encompass facilities that provide coffee, tea and other hot beverages within the workplace. It’s a lucrative market accounting for around 20% of total revenues in the CSI category – estimated at $25.1 billion in 2016 in the US. Many operators in our industry are actively and successfully involved in OCS including, for example, Denver-based Source Office & Technology (see Big Interview, OPI November 2018, page 16).

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RAPID MICRO MARKET GROWTH Finally, micro markets is the third component. This segment is a relatively new addition to the category but, by some margin, is the fastest growing. Micro markets – often described as a ‘convenience store at the office’ – provide freshly prepared meals, healthy snacks and drinks that employees can purchase on site. While they still represent a relatively small share of revenues within CSI, they are rapidly being adopted by increasing numbers of businesses. In the US alone, it’s predicted that there will be 35,000 micro market locations by 2022, generating $1.6 billion in sales over the next ten years.

The National Automatic Merchandising Association, which represents the CSI industry, every

two years commissions a census that surveys its 1,000+ member companies. Conducted by research and management consultancy Technomic, the most recent completed and analysed census of 2016 confirmed that, while industry operators were placing less emphasis on traditional vending operations, 100% of respondents expressed confidence in the continued rise of micro markets.

SELF-SERVICE HONESTY SYSTEM Micro markets look and feel like modern convenience stores and consist of open rack displays and reach-in refrigerated coolers, coupled with a self-checkout kiosk. This self-service model relies completely on an honesty system, with consumers expected to pay for their purchases without a cashier on site. As a result, they tend to be used in ‘closed environments’ such as a workplace, rather than conventional retail spaces.

The surge in micro market uptake is partly driven by their popularity among users compared to traditional vending machines. Typically, they attract 18% more visits per day and spend per visit is, on average, higher. Because customers don’t require the correct change and can buy multiple items with one transaction, they tend to spend around four times as much per purchase.

Businesses also see other distinct advantages – the sales area itself can be tailored to whatever space a company has available and operators can experiment with layout and product mix to provide the best customer experience. A single micro market can easily stock between 150-400 products, compared to the capacity of a traditional vending machine which would typically hold just 40. This means operators can use this additional range to provide a more diverse offering, catering, for example, to those with special dietary needs, such as gluten-free or low-carb requirements.

All of this ties in well with the evolving workplace where employers want to offer the best experience to their staff, not only keeping them on site during the working day, but also providing well-balanced and

PAYMENTS AND PRICING Micro market customers are usually able to pay using cash or credit/debit cards, but the use of a prepaid or ‘stored value’ account – accessed using a smart card, fingerprint or mobile app – is becoming increasingly popular with providers, as the funds are then collected before goods are actually purchased.

This move away from the traditional vending model completely alters the cash flow requirements of the operator, which is an added attraction.

Micro market products are typically priced 15-20% higher than those of a vending machine to offset costs incurred by the additional equipment, software and supplies required, plus the inevitable theft and product spoilage that occurs. However, this seems to be a price that consumers are willing to pay and, indeed, some employers are subsidising prices of healthy food options, as part of their overall staff wellness programmes.

According to provider Parlevel Systems, micro markets function best in office environments with an employee count of 50-200. Below that and it’s difficult to make sales that can justify the costs; above that and companies typically have onsite dining services.

That said, micro markets are also making inroads in locations such as college campuses where having a ‘grab and go’ option alongside the formal refectory widens the variety for students.

PRODUCT EXTENSION Although primarily designed around the provision of food and beverage products, there’s no reason why the office micro market needs to be limited to this.

Once the system is in place, it can be extended to offer other items, such as small electronic devices, travel gear, or pretty much anything that space allows.

Micro markets function best in office environments with an employee count of 50-200

A micro market supported by Parlevel Systems technology

The potential of micro markets is great, particularly for operators already heavily involved in the breakroom space that understand the requirements. That said, it’s an entirely different sell – the consumer is the customer (and the one who pays), not the typical B2B customer of a reseller – and the category is rife with regulatory risks because of the often perishable nature of the product sold. But for companies of a certain size, their breakroom will ultimately be challenged – a refrigerator with some basics, a range of tea and coffee-making facilities, a fruit bowl and some biscuits might not cut it anymore. Micro markets are the trend.

Look out for more information on micro markets in forthcoming issues of OPI.

February 2019

ADDRESSING THE CHALLENGES While the micro market concept seems attractive to both companies and their employees, there are challenges for those working in this area or indeed newcomers that want to take the plunge.

Firstly and rather obviously, the products on sale must be attractive to the customer. Tastes and requirements differ between individuals, workforces and regions, and the food choices available must reflect this. Thankfully, inventory tracking will show what items are popular and the mix can be tailored accordingly, with new product additions trialled to assess popularity before being permanently added to the range on offer. The trend for healthier food options, perhaps backed by company subsidies, can also be tapped into. The provision of low-calorie, nutritious fresh food, restocked daily, is an obvious way in which micro markets can set themselves apart from the traditional vending machine.

Layout is also important. Although most micro markets can be customised to work in the available space, providing an attractive, functional setting that ensures easy movement is vital. Access to power supplies for chiller cabinets and check-out systems, are essential.

The key interactive elements of the micro market are the self-service kiosk and the check-out area.

Food items must be easy to see and select, and the payment system simple to use. Customers should be able to scan the items selected in an intuitive manner and complete the transaction without any technical hold-ups. The more advanced tills now use touchscreen technology backed by fingerprint readers, barcode scanners and touch-payment options, in conjunction with webcams for added security. The checkout system must be capable of tracking and recording sales data to provide accurate inventory and revenue reports. The golden rule is to offer an easy-to-use, robust system with low maintenance requirements that is suitable for high-traffic areas.

SPOTLIGHT Micro Markets

healthy meals. And it all comes at minimal risk to them, as micro markets are managed by the operator, not directly by the employer. Companies typically merely allocate the space needed for a micro market, although profit share options are available too.

The inventory management system tends to be automatic and web-based, which simplifies operations and ensures shelves are restocked regularly with fresh items.

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CATEGORY UPDATE

Market forces and shifting consumer behaviour are reshaping the writing instruments category – by David Holes

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SHIFTING SHOPPING HABITS As mentioned, the UK has its very own challenges and Brexit is certainly having an impact on the mood in the UK, according to Wendy Vickery, Marketing Manager at Pentel: “Our performance over the past year has been very positive, but uncertainty is the watchword at the moment. No one is confident that any government statement made one day will hold true by the end of the week, let alone throughout the coming year. However, although UK growth forecasts have been downgraded and economists cannot agree what the future will bring, day-to-day business carries on.

The way consumers are shopping is changing, and stationery and office products buyers are no exception “What is certain though, is that the way consumers are shopping is changing, and stationery and office products buyers are no exception. The UK high street, in particular, faces the biggest challenges from the boom in online retailing, with big names disappearing all the time. That said, many traditional businesses and smaller outlets are capitalising on their core strengths and using their expertise and

February 2019

t a time when both the business and consumer worlds seem to be marching in quick-step towards an increasingly digitised future, it’s perhaps surprising to see the writing instruments sector surviving as well as it has done. And while you wouldn’t describe it as a buoyant category, key stakeholders still see value and opportunity in it, focusing on product differentiation and innovative new designs to set themselves apart from the competition.

German manufacturer edding, for example, is concentrating on its core markets in Europe and South America. Although key Latin countries such as Argentina, Colombia and Ecuador are somewhat volatile, things are looking better closer to home, especially in Germany, Spain, Switzerland and France. But even Europe is not without its problem areas, as COO Thorsten Streppelhoff admits: “Three countries – Turkey, Russia and the UK – are going through troubled political and economic times, but even here we’re seeing good performances, with the UK business, in particular, growing strongly.”

While recognising that some traditional markets are stagnating, fellow German manufacturer Stabilo is managing to buck the trend and has reported 5% growth in the writing instruments sector over the past financial year. The Asian market has performed well for the company, but again, it has been in Europe where most of its gains have been made, with Spain and Italy in particular delivering stand-out sales increases.

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Writing Instruments CATEGORY UPDATE www.opi.net 38

product knowledge to provide a point of difference and give them a commercial advantage. Although the climate remains tough, consumers are still looking to independent retailers to help them choose the right product for specific uses and for new hobbies and interests.”

Reports from the US also show that in-store sales are still an important factor, as Ken Newman, Director of Marketing at Zebra Pen, relates: “The sector as a whole experienced modest gains this year, but is still driven primarily by bricks-and-mortar purchases, with a remarkable 89% of consumers preferring to shop in a store for their writing supplies rather than go online. Although e-tail sales increased their share by 1.3% over the past year, it’s obvious that traditional distribution channels are still critical.”

RIDING THE CREATIVE WAVE The rise of bullet journalling – the creation of a record that’s a blend of log-book, planner and diary – remains one of the core factors driving the writing instruments category. “It’s a means of self-expression mixed with organisation and scheduling,” says Newman. “Unlike other writing fads, I believe this is one that will stay the course as it actually has practical value in helping individuals keep things in check when faced with today’s hectic pace of life.

“And while black is still the dominant ink for everyday writing, the trend is towards colour, fuelled by this move for more creative expression; it’s a key factor in market growth. The shift towards gel pens also continues – they now represent 42% of sales compared to 36% for ballpoints, though the latter remain a main product type during the back-to-school season where sales see a surge.”

Edding is also experiencing high demand for products that meet this trend in creative activities, such as journalling and calligraphy, and has been expanding its range in these areas. “Products like

permanent sprays and porcelain brush pens have delivered double-digit growth figures for us,” says Streppelhoff. “To capitalise on this trend, we have launched the Colour Happy Big Box – a set including a total of 70 products that can fulfil the requirements of any hobby artist who wants to get started in this creative sphere. Additionally, we’ve started offering ranges more closely tied to specific uses, such as our seasonal colouring set for autumn and winter which contains the types of products people need for decorating and crafting over the festive season.

“Another interesting trend that has gained ground in 2018 was the crossover between our products and the interior design and DIY world. We now regularly launch permanent sprays and pens in fashionable colours to support this. New ideas for items like these often come via feedback from our customers using social media platforms.”

As with other OP segments, environmental concerns are having an impact on the writing instruments category. Some manufacturers have invested in pens made from recycled PET plastics or have created writing instruments from biodegradable materials which will quickly break down once they are disposed of. These items not only appeal to environmentallyconscious customers, but also help a company’s products stand out in a crowded marketplace.

Edding’s Colour Happy Big Box

SOCIAL MEDIA TO DRIVE SALES A shift in colour preferences – often backed by strong online marketing campaigns – is another trend in this category. Carolin Vollrath, Digital Sales Manager at Stabilo, describes pastel colours as “the new black”.

The company has seen considerable success from offering its classic highlighter pens in these softer, more subtle tones, particularly in Asia and across Europe.

Backed by targeted social media campaigns, Stabilo monitors interior design and fashion styles and then reacts quickly to showcase the products

Writing Instruments CATEGORY UPDATE

Many industries have a huge requirement for labelling and marking during the production process

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that tap into these. Recent examples include the promotion of its pastel shades in cooperation with social media influencers in the Philippines, which generated considerable local hype. The company scored a similar hit in Spain using Instagram to push its pastel highlighter range, and discussions around this subject became a top-three trending topic.

Vollrath adds: “While these new colours are no substitute for the traditional high-visibility neon colours, they are a very useful addition that drive sales across the entire highlighter range, with this sub-category as a whole enjoying double-digit growth.”

Social media is also being used in other ways across this category. Mitsubishi Pencil in the UK, for example, runs a blog featuring its in-house artist showcasing some of the ways its range of uni-ball products can be used. Plus, it interacts with its customers via the Pinterest and Instagram platforms where consumers can display their creations.

“We want to enthuse our customers,” says Director of Sales & Marketing Paul Smith. “Pens are more than ‘just writing’ to us. Inspiring consumers to get creative through social media networks will be an important point of focus for us in 2019. We will also be continuing our charitable partnership with Great Ormond Street Hospital in London. We’ve raised over £178,000 ($225,000) through the sales of our bestselling uni-ball Eye pens, with the money going towards creative activities for children to aid their treatment and recovery.”

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NEW MARKETS Away from the traditional writing and creative fields, manufacturers like edding are looking to branch out into other areas, such as the industrial sector. “This is a key growth area for us,” states Streppelhoff.

“Our research shows robust demand for high-quality marking applications as well as interesting new opportunities in niche verticals such as medical and other laboratory locations.”

Keen to explore the prospects of transferring its expertise in the marker business to other industries,

Above: Getting creative in Great Ormond Street Hospital with uni-ball pens (below)

the company has recently launched its own start-up subsidiary business in Munich, known as edding Tech Solutions. To date, it has two main product lines. The first, known as edding Code, uses conductive ink to print information onto paper, packaging or labelling.

It’s invisible to the naked eye, but can be read digitally by a smartphone or other touchscreen device. It offers new solutions for brand authentication, document security, interactive packaging and other marketing and promotional activities by bringing the online and offline worlds together.

The second strand of Tech Solutions is a range of compact printers for industrial marking applications, designed to meet the requirements of Industry 4.0 – the name given to automation and data exchange in manufacturing processes that includes technologies such as the Internet of Things and cloud computing.

“Many industries have a huge requirement for labelling and marking during the production process, such as printing ‘best before’ dates, QR codes or serial numbers on their finished products and packaging,” says Streppelhoff. “These needs simply cannot be met by hand-marking. We’re developing new high-performance printers that can do this for use primarily in the pharmaceutical, food and wood processing sectors.”

MERGING ANALOGUE AND DIGITAL While competition between the analogue world of pen and paper versus the digital domain of tablet and computer will undoubtedly continue, some crossover products are emerging that look to combine the best aspects of both.

‘Smart pens’ use an infrared camera embedded in their nib to record what you write onto special electronic paper – this contains a dot-positioning system that allows the camera to follow the user’s pen strokes. They often include audio recorders for taking voice memos too. Once the pen is replaced in its cradle, it automatically uploads what you’ve written and records it on your computer as a text and audio file.

The Stabilo EduPen is another example of a product that uses digital technology in conjunction with a traditional pen. In this instance, the goal is to help children learn to write. Designed for use in a classroom environment, it operates in conjunction with an app to assess the writing motor skills of an individual child. After a short test using the EduPen on paper, the app evaluates what elements of handwriting need to be improved and automatically assigns suitable worksheets for the teacher to use which are aimed at improving the pupil’s abilities.

PEN POWER It’s estimated that the first writing instruments, a wooden stylus used to scratch marks into soft clay, were invented over 5,000 years ago. And it seems that pens and pencils are likely to be with us for some time yet – even if they do get enhanced using digital technology. As Vickery explains: “Their main strength is their simplicity. What’s the worst thing that can happen with a pen? If the ink runs out – simply refill it or replace it. No need to spend hours on user forums trying to fathom out why that morning’s data has been lost at the touch of a button. The demise of the pen is certainly not on the horizon.”

CATEGORY UPDATE

Reliance on office technology has never been greater and legislative changes mean certain equipment is virtually essential – by David Holes

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echnology now forms the bedrock of every office ecosystem. Without functioning IT, robust wi-fi and a whole host of electronic systems in place, the vast majority of workplaces would quickly grind to a halt. Our reliance on hi-tech has never been higher, yet few of us truly understand how it all works and would be helpless if it ceased to function correctly.

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TECH TROUBLES In recent years, office technology has often become almost alienating for those it’s meant to help. Rather than being designed with end users in mind, systems have required a technical expertise that most office workers simply don’t possess. And the typical employee doesn’t have the time, interest or patience to learn the new skills required to make the most of it.

It’s unlikely, for example, many staff truly know how to use all the capabilities of the office multifunction printer that also aims to be a fax machine, photocopier, emailer and scanner.

But as Richard Glückman, CEO of Sweden-based technology solutions provider Evoko, suggests, things are beginning to change: “Over the past couple of years we’ve begun to see a more ‘empathetic’ and accessible design focus in office technology. Simple, effective functionality that is intuitive and clear to all types of user is now seen as the gold standard. This has required stripping away superfluous features which were often promoted under the guise of ‘added value’, but which actually just creating a bloated and confusing product.

“Tech solutions are becoming increasingly integrated within the fabric of today’s smart workplace. Successful vendors are creating

design-led products that can sit in the middle of the modern office, rather than appearing unsightly and needing to be hidden away. Good tech today is approachable and facilitates collaboration, with employees actively wanting to use it.”

REALITY BITES That said, it seems that many workplaces still have a long way to go if they want to keep employees happy.

A recent survey by electronics firm Sharp, involving 6,000 office workers across Europe, revealed that only 17% would describe their work environment as motivating. Technology in the workplace was identified as a major issue, with just over half (51%) of respondents saying it was restrictive and limiting,

The moment that anyone in the business starts to question whether a technology is necessary is when it threatens to become superfluous driving 32% to pretend equipment was broken so they could avoid using it. Even among millennial workers – usually assumed to be more comfortable with modern tech – 45% sometimes avoided using the technology in their office because they found it too complicated.

While the larger, more progressive companies may be making major inroads into providing the most useful tech solutions, it seems that the average employee isn’t completely happy with the technology provided in the workplace. In fact, it might actually be hindering their performance.

GDPR made everyone more aware of the need to have good document destruction capability “The legislation means that people are increasingly aware that they can’t leave documents containing personal information lying around. Clean desk policies and a nightly lock-up of filing trays are now being implemented by organisations, with multiple shredders being distributed around the office so that staff can adopt new practices. ‘Shred it now’, ‘shred where you work’ and ‘shred little and often’ are buzzwords being hammered home to staff, to move them away from saving a pile of documents to shred at the end of the week. But they do of course need the hardware to support this.”

Many companies are also now questioning the wisdom of having sensitive documents sat in collection containers for days or weeks waiting for

Evoko’s conference phone Minto

February 2019

CHANGING EXPECTATIONS The modern workforce expects flexibility. That could mean an option to work remotely from home, the ability to bring their own devices into work or simply having access to a laptop rather than a desktop in the office, so staff can easily move around and work where they please.

“One example of a piece of office technology that is taking part in this trend is the Evoko Minto conference phone,” explains Glückman. “Along with state-of-the-art noise cancellation and intelligent microphones, it’s completely wireless and connects to a smart device via Bluetooth to, in effect, turn any space into a meeting room. This type of equipment is vital these days when so many offices are set out as a variety of breakout spaces in different environments to encourage creativity at work.

Employees now expect the office to work for them, and technology such as this is essential if this is going to operate successfully.”

At a time when budgets are becoming ever tighter, it’s the technologies that prove their worth on a daily basis to the people who use them that are the most successful. “The moment that anyone in the business starts to question whether a technology is necessary is when it threatens to become superfluous,” warns Glückman. “Facilities managers are growing increasingly sceptical of any product that lacks a clear focus. Office tech must offer obvious benefits or it simply won’t be adopted.”

It’s a no-brainer: if an office is technologically behind the times, staff aren’t happy and struggle to give the efficiency a business needs to thrive.

Falling behind the curve with outdated software and hardware can put a company at a disadvantage.

Making the right choices can save time and money, and choosing people-centric products is vital.

As Stuart Sykes, Managing Director of Sharp UK, states: “Making sure everyone feels motivated is important for creating a happy workplace, where people can achieve their best work. But technology only improves motivation if it’s helpful and easy to use, otherwise it becomes a demotivator and a cause of frustration. Look at the tools you use and the ones you need, and make the improvements necessary to ensure people enjoy coming to work.”

CATEGORY UPDATE Office Technology

a shredding truck to arrive. “They offer nothing like the security of an office-based cross-cut machine,” says Harper. “And over five years, the cost of using these off-site services is about five times the cost of deploying an in-house solution.”

The scanner sub-category is another area that is seeing noticeable growth, according to Aaron Hopkinson, Product and Solutions Manager at Brother UK: “This segment continues to deliver great results, outperforming the market and growing in all areas. We’ve recently conducted a study with businesses and found that scanning has become much more established as a day-to-day activity over the past two years. Although most firms were keen to reduce paper usage as part of their sustainability efforts, going completely paperless was deemed impractical. As such, scanning now has a critical role to play in bridging the gap between paper and digital information sharing.”

LEGISLATIVE EFFECTS Besides the need to improve productivity and offer staff an efficient, pleasant environment to work in, legislative changes have also had an impact on the kind of technology now seen as essential by most companies. When the General Data Protection Regulation (GDPR) became law across all 28 EU countries in May 2018, it imposed strict new rules requiring businesses to protect the personal data and privacy of European citizens. Non-compliance costs companies dearly, with breaches resulting in fines totalling €20 million ($22.8 million) or up to 4% of their annual global revenues.

This has prompted many to take a serious look at their data protection processes and practices. “GDPR made everyone more aware of the need to have good document destruction capability,” says Mark Harper, Head of Sales for Office Technology UK & Ireland at HSM. “We saw large growth in the sale of shredders in the first eight months of 2018, with some particularly big orders from large corporations.

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VENDOR PROFILE

A new era in the

WORLD OF STAMPS

Stamp and marking manufacturer COLOP is fully embracing the future as the launch of its first electronic marking device proves

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ounded in the early 1980s, Austria-based COLOP is a global leader in the manufacturing of modern marking devices and a specialist in the production of self-inking stamps. As a major player in the stamp industry, the company has achieved an outstanding position in the market thanks to its contemporary designs, product enhancements and pioneering ideas, such as EOS Flash stamps and materials for the production of text plates.

“Innovation is, and always has been, a key factor for our company,” says COLOP Managing Director Ernst Faber. True to his word, the manufacturer now sets a new milestone in the area of marking solutions with the launch of its first electronic marking device – the e-mark. This unique stamp is making its worldwide debut at Paperworld in Frankfurt, Germany, with the Swedish market set to see the initial roll out of the product.

“Interest from the office supplies industry has been great and the e-mark has been listed immediately in important Swedish office products catalogues,” says COLOP International Sales & Marketing Manager Franz Ratzenberger. “The results from Sweden will form an important basis for further marketing measures of the e-mark,” he adds.

Following the initial release, the e-mark will be available in major European countries during the first half of 2019, with availability in the rest of Europe and the US over the course of this year. This will be followed by a global product introduction.

WHAT IS THE E-MARK? The e-mark is an electronic (battery-powered) mobile marking device that enables users to make their own imprints with an easy sideways movement.

The product has been in development for several years, but now the e-mark and its corresponding app are ready for serial production.

Innovation is, and always has been, a key factor for our company The e-mark opens up many new avenues for the office supplies sector and is aimed at both business customers and end consumers. With its numerous features and fields of application, it has the potential to usher in a new era in marking solutions.

Through an app created by COLOP’s specialist in-house development team, there are almost unlimited designs, ready-to-use templates and special features available, including company logos, date, time and number functions, and a QR or barcode generator. Any absorbent surface such as paper, envelopes, books, cardboard, paper bags or even wood can easily be marked with the e-mark. “Used in combination with COLOP e-mark label sheets, many other materials such as glass

VENDOR PROFILE

and metal can also be stamped. This makes the e-mark not only a perfect organisational and office tool, but in addition offers fantastic opportunities for personalisation,” states Ratzenberger.

COLOP

E-MARK APPLICATIONS The e-mark app is compatible with both iOS and Android devices and can be downloaded from the Apple Store or the Google Play Store free of charge.

It makes it possible to create, change and transfer individual full-colour and/or black & white imprints wirelessly to a device, enabling the e-mark to be used wherever, whenever and however.

Thanks to its inbuilt rechargeable battery, the e-mark is perfect to use on the go, either in online or offline mode, whether in the office, warehouse, studio, outdoors, or on a business trip. Unlike traditional stamps, personalised imprints can be changed as required, either using one of the many predefined templates or by entering personal data – including images and text – into the app, which is then displayed in full colour on the e-mark.

The e-mark sets a new standard in marking

COLOP has secured a clear competitive edge in electronic stamping In contrast to standard stamps, the e-mark’s single imprints can be up to 150 mm in length and its continual marking function offers even longer markings. The only current limitation is the 14 mm one-line height, but users can simply print several consecutive lines.

“The first e-mark device has been received enthusiastically and as befits an international, innovative company, COLOP has secured a clear

competitive edge in electronic stamping through our worldwide patents,” says COLOP Head of Product Management Wolfgang Pichler.

The product was developed in cooperation with HP Specialty Printing Systems. The OEM partnership has resulted in COLOP being one of the first manufacturers to incorporate HP’s latest three-colour inkjet printing technology.

The e-mark’s sensor technology has also been provided by leading manufacturers in their field, ensuring paper navigation is extremely reliable and the quality of the imprints is outstanding.

“Despite all its features, the e-mark is no substitute for conventional stamps, but rather an important addition to our core business where many new fields of application will open up,” comments Faber.

“We are positive that the development of this product will strengthen and expand our other business. With a price point of around €300 ($343), it is also clearly different from our main assortment, but then the e-mark offers so much more!”

February 2019 45

VENDOR PROFILE COLOP STRENGTH IN NUMBERS COLOP is an international player with a distribution network and sales presence in more than 120 countries. It has over 500 employees worldwide.

The manufacturer is also strengthened by several COLOP-owned distribution branches or direct involvement in markets such as Germany, Sweden,

The founding of COLOP Digital is our answer to an increasingly connected world

www.opi.net

France, Romania, the UK, the Slovak Republic, Bulgaria, the Czech Republic, Hungary, Spain, Poland, China and India. In addition to its main production plant situated in Wels, Austria, the company has a second site located in Borovany in the Czech Republic.

COLOP is constantly striving to improve the quality and durability of all its merchandise, as well as increase the variety of available applications.

The company’s ISO 9001 certification ensures that products and services are subjected to regulated quality criteria. Environmental responsibility plays another important role in its mission and policies.

For many years, the manufacturer’s environmental management system has been certified according to ISO 14001, which guarantees that all processes are optimised according to ecological criteria. This forms part of its ongoing endeavours to make the biggest possible contribution to protecting and preserving the environment.

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GLOBAL EXPANSION As well as developing innovative products, COLOP is on a worldwide expansion path. Recently, two new sales offices have been set up in metropolitan cities in China and India to gain a stronger foothold in the region. “Due to the economic upturn in these countries, we have decided to take this important step,” Faber explains.

“The Asian market, with more than four billion inhabitants, is becoming increasingly important to COLOP as the demand for high-quality products in the stamping industry grows. With our sales offices in

The e-mark represents COLOP’s first electronic marking device, with further innovative developments already in the pipeline

Guangzhou and Mumbai, supplies to the territory can now be optimised,” he adds.

With 11 subsidiaries, Europe is still by far the company’s most important territory. Over the past few years, COLOP Austria has been busy cementing its position which has included the acquisition of a majority share in each of its distribution businesses in France and Poland.

COLOP GOES DIGITAL In keeping with its ambitious growth plans, COLOP has founded a new company – COLOP Digital – in collaboration with Swedish R&D engineer, inventor and business partner Alex Breton. As the name suggests, the division will focus on the development of new digital and electronic stamping solutions.

In addition to the new e-mark, further products are already in the pipeline, which will be accelerated as the development and management teams grow. “The founding of COLOP Digital is our answer to an increasingly connected world.

With our electronic and digital products, we want to make an active contribution to global development, which is in accordance with our guiding principle ‘The Spirit of Innovation’,” concludes Faber.

EVENT

BUILDING

MARK THE DATE

relationships R

OPI Partnership will be held from 4-6 March 2019 at the Hotel Okura in Amsterdam, the Netherlands.

OPI PARTNERSHIP PREVIEW

esellers: how can you conduct meaningful meetings with all the key vendors in the European business supplies industry to develop your business and help you grow?

Vendors: where can you meet up to 30 of your most valuable reseller partners in just two days, many of them for in-depth strategic discussions?

The answer to both questions is OPI Partnership, the annual ‘top–to-top’ strategic networking event that in 2019 will be held from 4-6 March at the Hotel Okura in Amsterdam, the Netherlands.

As Burkhard Wessel, VP Sales at envelope manufacturer Mayer-Kuvert-network – a first-time attendee at the 2018 event – says: “To realise the meetings we have had in just two days, you would normally have to travel for at least three weeks and even then you’re not guaranteed to ever get the opportunity to meet with all of the senior executives at these resellers.”

many attendees have returned, citing “excellent ROI” and “invaluable, concise discussions” as their top reasons to do so.

As our industry becomes ever broader in terms of product scope, new companies – large and small and from across Europe – are joining the mix from the manufacturing as well as distributor and reseller communities, making for an evolving event that cements existing and forges new relationships.

With an average of 12 in-depth meetings [...], this C-level event is an excellent forum to build lasting relationships

www.opi.net

GAP IN THE MARKET The idea for Partnership came about several years ago when the OPI team recognised a gap in the market and the need for a platform that brings together the leading vendors, resellers and distributors in the European OP industry. The first OPI Partnership took place in 2014 and every year since,

48

PARTNERSHIP

2019

All meetings are meticulously organised in the run-up to the actual event – with plenty of flexibility built in – so that delegates’ time is well spent in a series of one-hour confidential sessions where they can immediately delve into strategic discussions.

OPI Chief Commercial Officer Chris Exner says: “OPI Partnership is an event that’s unique in our industry. It brings together over 100 of the most senior OP executives in Europe, representing prominent manufacturers and the most important resellers. The way it’s organised offers an incredibly efficient and productive way to meet your most valuable existing and prospective customers or suppliers over a structured two-day period. With an average of 12 in-depth meetings over these days, this C-level event is an excellent forum to build lasting relationships.”

While the high-level, decision-making meetings are at the very core of OPI Partnership, there is plenty of time for more informal gatherings during the frequent networking and coffee breaks. Meet executives and companies that you’ve never dealt with before and renew old friendships during those breaks and also, of course, during the evening functions. One of these is the not-to-be-missed European Office Products Awards presentation dinner (for the shortlist and more information, see page 50), which will be held on 5 March at the end of the first full day of OPI Partnership.

This year’s OPI Partnership is almost sold out (only two places left!). To get involved or to be considered for this invitation-only event in 2020, contact Chris Exner at chris.exner@opi.net.

EVENT

The

W

QUEST

EUROPEAN OFFICE PRODUCTS AWARDS

for EXCELLENCE

hat determines excellence in these challenging times – continuous innovation, always tapping into current consumer trends, improving revenues, gaining market share, customer service brilliance? All of the above.

On 5 March 2019, Europe’s leading operators from the business supplies industry will gather for the 18th time at the European Office Products Awards (EOPA) presentation dinner at the Hotel Okura in Amsterdam. They will celebrate people – three awards are up for grabs here, among them the prestigious Industry Achievement trophy – companies, initiatives of various kinds and, of course, products.

Nominations for all categories flooded in last autumn, to then be judged by a panel of industry experts on a sunny December day in Madrid,

9

Spain. The resulting shortlist – see below – and a brief synopsis of all shortlisted entries over the next few pages already offer a broad reflection of the European OP landscape and its ongoing shifts as well as a glimpse into the demands and expectations of today’s customer base. Sustainability, digital prowess, legislative awareness, the evolving workplace and many more topics – they all have a role to play and the very best entries will be rewarded for their efforts. Don’t miss it!

EOPA 2019 SHORTLIST PRODUCT OF THE YEAR • AJ Products – Modulus sit-stand conference table • Hamelin – Scribzee-powered Oxford Products • HP – Sprocket Photo Printer • Samsung – Flip Interactive Display WMH Series 55 • Steppie – Balance Board

www.opi.net

VIDEO OF THE YEAR • Brother International Europe – VC-500W full-colour compact label printer with ZINK Zero Ink Technology • HP – Sprocket Photo Printer • Pilot Pen Europe – #PILOTART Canelle Design • Samsung – Flip Interactive Display WMH Series 55 • ZenOffice – ZenOffice Print & Promotion: Take a walk with our print specialist, Chris

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WHOLESALER OF THE YEAR • Corwell • Exertis Supplies • JGBM • PBS Holding MARKETING CAMPAIGN OF THE YEAR • ACCO Brands – Rexel GDPR campaign • Avery – Every label tells a story • Durable – Duraframe TV campaign • Fellowes Brands – Sensible steps for GDPR with Fellowes Brands • ZenOffice – What does print mean to your business?

INITIATIVE OF THE YEAR • BIC – Ubicuity: The ‘write’ kind of bench/Developing ‘virtuous circles’ • Brother International Europe – All in Box • Fellowes Brands – GIVE Program • JGBM – TechStuff!

Cloud-based ‘managed’ e-catalogue • Office Friendly – Pioneer powered by Office Friendly • RTC Proffice Experience – Feel Green, Choose Double A! VENDOR OF THE YEAR • ACCO Brands • Essity • Fellowes Brands • Papyrus

9 RESELLER OF THE YEAR • Amazon • Böttcher • Bureau Vallée • Gruppo Buffetti YOUNG EXECUTIVE OF THE YEAR • Scott Castle, VOW • Margaux Lefaucheux, HK Wentworth • Katie Metcalfe, Office Friendly PROFESSIONAL OF THE YEAR & INDUSTRY ACHIEVEMENT No shortlist – the winners of these awards will be announced on the night.

VIDEO OF THE YEAR

AJ Products – Modulus sit-stand conference table This height-adjustable conference table allows for a group of people to vary between sitting and standing.

It’s ideal for active meetings and addresses research that standing at work for several hours per day gives the body considerable health benefits.

Brother International Europe – VC-500W full-colour compact label printer with ZINK Zero Ink Technology A striking and creative video that seeks to capture the essence of a new Brother product and “bring labels to life”.

Pan-European in its target audience outlook, a video that has enjoyed outstanding exposure across various social media platforms.

Hamelin – Scribzee-powered Oxford Products Scribzee-powered products automatically create a high-quality digital copy of your handwritten notes.

Review your notes at any time – they are always retrievable, editable and shareable from all your connected devices, even when you don’t have your Oxford notebook with you.

HP – Sprocket Photo Printer Meeting the needs of next-generation customers, the HP Sprocket’s sleek design fits into any handbag or pocket. Print instantly from your mobile and personalise with frames, icons, emojis and text. Best-in-class print quality using ZINK technology.

Samsung – Flip Interactive Display WMH Series 55 The Samsung Flip transforms any space into a meeting room. With touch navigation, up to four people can get creative at the same time, using any object as a writing tool to create content and designs on screen. It connects easily to external devices enabling teams to share content.

Steppie – Balance Board The Steppie Balance Board ensures staff get the full benefit of a sit-stand desk. Static standing is uncomfortable, but with the slight motion caused by the Steppie, this more ‘dynamic’ standing allows users to comfortably stand for longer.

HP Sprocket Photo Printer On trend and from the outset appealing predominantly to the millennial B2C customer, HP’s video expertly taps into the changing work environment as well as satisfying demand for instant print-as-you-go user behaviour.

Pilot Pen Europe – #PILOTART Canelle Design Employing celebrity endorsement, Pilot Pen Europe’s video is a creative and artful demonstration of how one of its products can be used. It beautifully illustrates the point of how artful writing instruments can be.

Samsung – Flip Interactive Display WMH Series 55 Aiming to convert chaotic brainstorming sessions into calm and organised meetings that deliver long-lasting results, the Flip Interactive Display video sends a sharp and clear message to Samsung’s target audience.

ZenOffice – ZenOffice Print & Promotion: Take a walk with our print specialist, Chris This animated video illustrates the scope of ZenOffice’s Print & Promotion division and how it can provide a complete print solution for every kind of business. With the purpose of driving sales activity, a great example of how to successfully create a video on a limited budget.

PRESENTATION DINNER

The winners of the 18th EOPA will be announced on 5 March 2019 at the Hotel Okura in Amsterdam, Netherlands

EVENT EOPA

PRODUCT OF THE YEAR

To book your seats or for more details,

visit www.opi.net/eopa2019 or email awards@opi.net

WHOLESALER OF THE YEAR

Corwell Founded 27 years ago, Hungary-based Corwell goes quietly about the business of working with its vendor partners and supporting its resellers. Commended for its superior merchandising on and offline, Corwell goes the extra mile ensuring it not only delivers product, but does so with great emphasis on supporting local communities and being environmentally sound.

Exertis Supplies Exertis Supplies is an operator that, as the EOPA judges said, does what it does extremely well with its simplistic and effective approach. A previous winner, it offers product at low cost and with service very high on the agenda. Not value-added sales or marketing services, but range, availability and speed of delivery.

Exertis Supplies is always praised for its excellent vendor and dealer partnerships.

JGBM UK-based JGBM excels in the hugely challenging category of office technology with its margin pressures and pricing visibility. It does so by being highly focused – and very skilled – in the digital arena, operating a wide range of sophisticated platforms and systems. A niche wholesaler that offers outstanding value-added services to its dealer customers.

PBS Holding Austria-based PBS Holding continues to develop and grow in a fragmented European wholesaler channel, most notably in Poland, Austria and Germany.

Having long adopted a multichannel approach that is becoming increasingly popular, the words “professional”, “well organised” and “progressive” were frequently mentioned by the judging panel.

February 2019 51

EOPA EVENT

MARKETING CAMPAIGN OF THE YEAR ACCO Brands – Rexel GDPR campaign Under the broad umbrella of ‘Data Shredded – Data Protected’ and with GDPR legislation in mind, ACCO Brands’ objective was to communicate to its target audience the need to protect data, not just in digital format, but also paper documents. The underlying sales goal was to boost the shredder category which this campaign successfully accomplished.

Avery – Every label tells a story Avery’s ‘Every label tells a story’ initiative sought to uncover the secrets of successful product labels – how can a shipping label, for instance, subconsciously influence the views of postal recipients?

The aim was to give label users – especially small businesses – a definitive guide to creating the most effective label for their needs.

Durable – Duraframe TV campaign This campaign highlighted how a mid-sized company like Durable can promote a product – the Duraframe – through excellent sales and marketing collaboration and real entrepreneurship across many media, including a four-week TV spot, and achieve revenue results.

Fellowes Brands – Sensible steps for GDPR with Fellowes Brands This integrated marketing campaign also aimed to educate OP resellers and business consumers about the new European GDPR regulation. Aside from increased awareness, it resulted in a considerable uptick in the shredder category overall and for Fellowes Brands specifically.

ZenOffice – What does print mean to your business?

This campaign, encompassing media such as video and augmented reality, focused on ZenOffice’s Print & Promotion division, highlighting the experience of its print specialists and illustrating how this UK dealer can provide a complete print solution for every kind of business.

www.opi.net

VENDOR OF THE YEAR

52

ACCO Brands All eyes have been on ACCO Brands over the past 18 months or so when it faced the task of integrating two businesses in Europe – Esselte and ACCO Brands. Highly regarded across a vast product portfolio, the company has done a remarkable job combining the two entities while at the same time instilling a positive, new culture among the workforce and with channel partners.

Essity Swedish hygiene products group Essity and its global brand Tork had a good 2018 – helped by a strong performance in the Professional Hygiene arm – and made it into the EOPA list for the first time in several years (previously as SCA). Essity was highlighted for its strong sustainability efforts as well as for its progressive, often tech-based, product range.

INITIATIVE OF THE YEAR

BIC – Ubicuity: The ‘write’ kind of bench/Developing ‘virtuous circles’ Ubicuity is a line of furniture made from recycled pens. The initiative was launched by BIC in collaboration with TerraCycle, Govaplast and Plas Eco. It encourages customers to collect discarded pens, which are then transformed into highly durable benches for use in schools.

Brother International Europe – All in Box Brother’s All in Box offers all a customer needs to print for three years, in one package with a discounted price and a three-year warranty. End users realise savings while channel partners gain new sales routes.

Fellowes Brands – GIVE Program For its 100th anniversary, Fellowes Brands set an ambitious target for its long-standing GIVE Program and challenged its European team to raise €100,000 ($114,000). By March 2018, it had raised over €104,000, beating the target at an early stage.

JGBM – TechStuff! Cloud-based ‘managed’ e-catalogue TechStuff! is a cloud-based e-catalogue with wholesaler JGBM controlling content in real time. It delivers product videos, changing promotions and competitive pricing directly to dealers’ customers.

Office Friendly – Pioneer powered by Office Friendly Pioneer is an online tool for OP resellers to develop their skills and knowledge. It offers executives and their teams the opportunity to progress in their personal and professional development.

RTC Proffice Experience – Feel Green, Choose Double A! In partnership with Double A and the Carpathia Foundation, RTC launched ‘Feel Green, choose Double A’, an initiative where the reseller committed to plant six trees for every 200 reams of Double A paper sold.

In 2017, over 151,000 reams were sold and in 2018 staff and customers of RTC spent two days planting trees across five hectares of land.

Fellowes Brands Fellowes Brands is a familiar sight on the EOPA shortlist (and a previous winner too), hailed for great customer relationships and a product portfolio that constantly evolves. It backs up its ability to anticipate market evolution with tried and tested as well as innovative new sales and marketing tools for its reseller partners.

Papyrus Papyrus is at the very heart of the challenges that our industry faces, paper being one of the most notable declining categories.

Despite that, says the product and supply solutions provider, “we believe in paper and are ready to invest”. Its brand new logistics and competence centre in Germany serves as one of several platforms to better work with its European partners in 19 countries.

EOPA EVENT

RESELLER OF THE YEAR

Amazon Amazon – and Amazon Business in several European countries now – has become part of the core fabric of the European business supplies industry, taking market share, outperforming the competition on many fronts and continuing to create real emotional attachment among its customer base. A perennial EOPA contender.

Böttcher Germany’s Böttcher continues to excel in a competitive market, with organic growth of 31% in the first half of 2018 alone (to €172 million/$197 million). Its mid-term annual revenue goal stands at €500,000 million.

The online reseller’s assortment and scope is ever growing, resulting in considerable investments in its facilities, manpower as well as online tools – the latter often hailed as the main driver for its success.

Bureau Vallée Bureau Vallée remains a stand-out performer in the retail space, with a formidable brand name in the French B2B market. Double-digit growth and ambitious plans to open more stores, both at home and abroad – it now has stores in countries such as Italy, Spain and Tunisia – bode well in a hugely challenging retail environment.

And while bricks-and-mortar remain key, the reseller is also actively investing in a wide range of digital tools.

YOUNG EXECUTIVE OF THE YEAR Scott Castle, VOW Scott Castle, Product Marketing Manager at VOW, is a professional with outstanding initiative, bags of enthusiasm and a thirst for sourcing new opportunities. Having been at VOW for five years, Scott has already shown some leadership skills when he developed a fully-integrated marketing plan for the wholesaler. He’s also involved in the industry at large as part of the BOSS Leaders of the Future Committee.

Margaux Lefaucheux, HK Wentworth A highly-driven individual with experience in account management, customer services and relationship building, Margaux Lefaucheux is Key Account Manager at office equipment cleaning product specialist AF International, part of HK Wentworth. With great attention to detail and a can-do attitude, Margaux prides herself on making other people’s jobs easier.

Katie Metcalfe, Office Friendly Marketing Director of Office Friendly Katie Metcalfe has become a key member of the dealer group’s Strategic Management Team. Having been with the group for 13 years, Katie has been instrumental in developing a wide variety of sales and marketing tools for members. A real team player and another BOSS Leader of the Future, Katie thrives on building relationships and has an uncompromising dedication to individual development.

PROFESSIONAL OF THE YEAR & INDUSTRY ACHIEVEMENT No shortlist – the winners of these awards will be announced on the night.

The class of 2018.

Who will be crowned EOPA winners this year?

www.opi.net

Gruppo Buffetti Italian office products franchise retailer Buffetti impressively continues to expand its geographical as well as product-related grip on the market. In 2018, it bought a 40% shareholding in Pigna, one of the country’s oldest and best-known stationery and school supplies brands. The move represented a key step in Buffetti’s strategy to focus on five core areas: office, school, gifts, software and services. As part of this strategy, the company had previously taken a controlling stake in gifts retailer Campo Marzio.

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THANK YOU TO ALL OUR SPONSORS

5 MINUTES WITH...

Andrea Kenna Your favourite app?

Sainsbury’s supermarket. I travel so much, and the app enables me to do the grocery shop at any time and from anywhere.

What’s your life philosophy?

Don’t worry about what you can’t control.

What special skill do you possess?

I can cook. At least that’s what my friends and family tell me. Apparently, I also make the best brownie ever (according to my son).

What do you do in your spare time?

Spend time with family and friends, and travel the UK seeing all my favourite bands.

What is the hardest thing you’ve ever had to do?

Deal with the cancer diagnosis and then the death of my mum.

What would be a good theme song for your life?

Walking on Sunshine by Katrina & The Waves. I always try to look on the bright side and I love holidays in warm climates.

At home, we all have a Mr Men or Little Miss mug and mine is Little Miss Sunshine!

What’s your favourite cuisine?

Italian.

What was the last gift that you gave to someone?

A drum kit to my son.

Your guilty pleasure?

Wine.

What is humankind’s greatest invention in your opinion?

The iPhone. You really can stay connected, anyway you want to, anywhere in the world.

Your favourite gadget?

Apple HomePod speaker. I love music and it’s so easy telling Siri to play my favourites.

Early bird or night owl?

Most of the time I’m an early bird, unless I’m on a night out, of course!

What was your last online search for?

This year’s summer holiday.

Where would you most like to visit and why?

San Francisco. I love city life and San Fran has been on my ‘must visit’ list for many years.

If you could trade places with someone for a day, who would it be?

Neil Armstrong on 16 July 1969. I don’t think I will have the opportunity to see space or the Moon in my lifetime, so that would be pretty amazing.

CAREER Q&A Describe your current job.

I lead a team of 60 people as Senior Director Merchandising Europe for Office Depot, accountable for delivering profitable category sales across seven countries.

Seven category teams and one new business team manage the product assortment, deciding which products and services to buy and develop, the selling price and any promotional tactics to drive demand. My key challenge is to stabilise category performance and grow sales, so there is lots of focus on the execution of category opportunities and trading results.

If you weren’t doing your present job, what else would you like to be doing?

Something completely different... a fiction writer. I read a lot and love the imagination and escapism.

Which industry figure do you most admire?

Graham Cundick. An industry legend!

I admire what he achieved at Office Depot and he was a renowned businessman and a true motivator who made people believe they could accomplish anything. The key lesson he taught me was that you cannot be victorious in all your battles, so focus on the ones you really want to win.

If you could change or influence one thing about the industry, what would it be?

Embrace Gen Z now through product innovation, compelling reasons to buy and the easiest, fastest ways to order to ensure they need this industry.

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What personal item do you have on your desk?

I have three desks – in Venlo (the Netherlands), Leicester (UK), and at home – and on each one of them I have hand cream.

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FINAL WORD

SELF-SERVICE FIRST personal touch second

I

start with the bold statement that you’ve been thinking about customer service all wrong.

The gold standard of customer service is actually NO service at all. Or, better put, great customer service is self-service for 99% of interactions. For the remaining 1%, all you need is a knowledgeable human being.

If your customers have to interact with you on a regular basis, you’re doing something wrong. I’m not just referring to customer/dealer relationships, but also dealer/wholesaler/manufacturer ones. I would argue that focusing on customer service, and measuring and rewarding your team for great interaction, is actually keeping you from providing truly great service.

SELF-SERVICE EXPECTED Self-service is no longer a trend; it’s an expectation of the younger generation. And by that I’m not only referring to millennials, but also to much of Gen X. Here are some examples:

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• The airport: why wait in line when a computer can print your boarding pass in two minutes?

• ATM machines: no queues and you have access to cash in thousands more locations.

• Travel: why have the added layer of a travel agent?

• Shipment tracking: we’ve been trained to know where our merchandise is at any given moment.

Having to call for a status update is unthinkable.

• Rental cars: VIP members already go straight to their car. The best customer service you can give is letting the customer walk to a car and drive away.

58

But Isaac, you might say, I hate the self-checkout line at the grocery store. This is a great example of how self-service for the sake of self-service (or cost savings) can actually create customer angst.

Instead of removing friction from the buying process, self-service here merely transfers the checkout burden to the customer. It’s too time-consuming and rarely seamless, leaving the customer frustrated and angry. Fortunately, self-checkout is just a transitional technology waiting to mature. The final iteration will resemble something like Amazon Go stores where you walk into the shop, grab what you need and walk out. Completely frictionless commerce.

The Tipsy Robot in Las Vegas is another example of how polarising self-service can be. For those not familiar, this is a bar that consists of only drink-mixing robot arms and touchscreens to place your drinks order. You press a couple of buttons, swipe your card or Apple Watch and the robot pours and shakes you a drink. Standing near the bar you can hear everyone over 50 complaining about how robots are taking over the world while the twenty-somethings are already concocting their second robot-crafted cocktail.

In my view the Tipsy Robot has taken a great first step by creating a self-service opportunity for its customers, but has completely failed at re-deploying human capital to create customer delight and ultimately loyal, repeat customers. We need humans to make human connections and technology to accomplish the rote tasks.

Isaac de la Fuente, Founder/CEO, Supply Chimp

PRACTICAL ADVICE What does all this mean for your business and how can you leverage the self-service revolution to better satisfy your customers?

Special Issue Providing great serviceHEALTH means & WELL-BEING getting out of the way of your

customers and letting them enjoy your services on their Special terms Issue Special Issue

& of touchpoints, time the number • MeasureHEALTH WELL-BEING and energy spent on your customers.

At Supply Chimp, we periodically record the purpose of inbound phone calls and emails, and measure the breakdown of all time spent by our customer-facing employees.

• Analyse the data to find self-service opportunities and prioritise.

Common examples might be customers asking for tracking numbers, invoices or price quotes, special pricing or promotional items, the wrong item sent, etc. Rank them by the total amount of human hours spent satisfying these tasks.

• Use technology or processes to self-serve Special Issue time-consuming customer touchpoints.

VENDOR Automate tracking numbers, provide online SPECIAL access to orders, allow printable, mailable invoices from customer account pages, facilitate self-service returns and shipping labels, etc.

Overall, let technologies accomplish the tasks they are good at, and let people focus on human connections. Importantly also, reclaim and reuse the new-found employee hours to create meaningful interactions with your customers.

Providing great service means getting out of the way of your customers and letting them enjoy your services on their terms. Be thoughtful and purposeful about your interactions so that your time is spent surprising, delighting and ultimately retaining those customers in a world rife with online competitors ready to take them away.

HEALTH & WELL-BEING Special Issue

VENDOR SPECIAL NEXT ISSUE

Special Issue

VENDOR SPECIAL

Big Interview Mercè Barcons, General Manager and Global Head, Supplies Printing Business, HP Inc Vendor Features l Vendor focus l Sustainability issues l Private label vs brands Events/Research l Paperworld review l Boiling the Frog - Revisited