OP Market in Australia
Market expenditure (A$ billion) at end-user values
RESEARCH
supplies – is growing at a rate of 4% a year. More importantly, six of these seven non-core categories display growth, the top three being furniture, workwear and safety, and cleaning/janitorial. n Core market average growth (2015-2019): -1.7% per annum (and accelerating down) n Non-core market average growth (2015-2019): 4.2% per annum (and stable) The research found that office products 8 suppliers have been achieving 10% growth in this market, despite being ranked lower in terms of 7 6.6 6.4 6.4 6.4 6.3 6.1 6.1 customer service compared to other suppliers. 6.0 5.9 6 5.6 The highest non-core spending growth came from government, large and medium businesses, with 5 sales to micro-businesses falling. 4 In terms of market share, Officeworks and Winc are the top two non-core resellers. Winc is the 3 more developed operator, with a relatively strong presence across all categories, while Officeworks 2 is highly concentrated in the printing and furniture 1 categories. Next are supermarket chains Coles and Woolworths with their strong sales of kitchen 0 2019 2017 2018 2015 2016 supplies and jan/san products. n ‘CORE’ OP EXPENDITURE (A$BN) n ‘NON-CORE’ OWS EXPENDITURE (A$BN) “In several adjacent categories, there are significant numbers of small, less efficient players that, while certainly having expertise in their areas, Source: Penfold Research squeezed in a declining sector, there are almost are also vulnerable to larger professional players always other linked sub-segments that are entering. Many of these smaller suppliers are buoyant. It’s not necessarily quick and easy to independents operating in one local area. Some of start taking sales in a new area, but my research the more conspicuous segments where this is the indicates there is an exceptionally large scale of case are workwear and safety, office furniture, and opportunity for competent players.” printing services,” says Penfold. He concludes: “Although the report is based on NON-CORE STABILITY & GROWTH the Australian market, I believe the central findings Meanwhile, according to Penfold’s Non-Core are relevant in other countries too.” Office & Work Supplies 2018-2020 report, the Australian non-core OP market – comprising For more information on the state of the global kitchen supplies, cleaning/janitorial products, office products industry, see also ‘Ringing the furniture, printing services, promotional products, changes – again’ on page 44. workwear and safety equipment, and packaging
AUSTRALIAN OFFICE AND WORK SUPPLIES MARKET 2015-2019: CORE VS NON-CORE
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