OPI February UK 2016 by OPI

Office Products International ISSUE NO.2 5 6

The word in office.

magazine

Big Interview

Udo Böttcher, CEO, Büromarkt Böttcher p18

February 2016

FEbrUary 2016

Hot Topic

3D printing goes mainstream p26

www.OPI.NEt

p11 What’s new at CES? p31 Focus on national accounts Paperworld is nigh p36 New: Millennials speak out p54

Contents February 2016

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News

39 Marketing the brand Dacris defends its number two position in the Romanian market

6 Round-up

ADVEO makes cuts in Spain; Mutschler steps down at Staples; CPD acquired in MBO

11 News Analysis

42 EOPA countdown

Who’ll win this year’s EOPA? Look at the shortlist to see who’s in the running...

Top tech from CES 2016; optimism returns in European paper channel

Category Analysis

Features

44 Writing Instruments

18 From small seeds...

Despite pressure from electronic products, the writing instruments sector is holding up well

Udo Böttcher tells the remarkable story of Büromarkt Böttcher and how it became one of the top online players in Germany

48 Security & Data Protection

With cybercrime and data hacking on the rise, the fight to protect valuable data is on

26 Carpe 3Diem

The 3D printing market offers great potential, but resellers need to jump on board now

Regulars

31 Big accounts within grasp

5 Comment

TriMega’s Grady Taylor urges independents to grab the national accounts opportunity

Adam Bradley

32 The Spider Report

Buying OP online is simple yet complex, The Spider Report reveals

36 Committed to the office channel

54 The generation game 57 5 minutes with... John Givens

As Paperworld draws near, Cordelia von Gymnich sets the record straight

58 Final word Maria Chappell

If I were an office dealer looking to become a 3D print reseller, I’d find a current customer that has been using 3D printing and learn what they are creating and all the tools, supplies, materials and software they use to do so. Customers will want a one-stop shop for all of this, and it opens the door to competition if you don’t carry, for example, the right kind of post-processing equipment or modelling software.... For the full story, turn to page 26

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Editorial Editor-at-large Andy Braithwaite +33 4 32 62 71 07 andy.braithwaite@opi.net

Editor Heike Dieckmann

Comment

+44 (0)20 7841 2950 heike.dieckmann@opi.net

Deputy Editor Michelle Sturman

Think positive

+44 (0)20 7841 2942 michelle.sturman@opi.net

Sales and Marketing VP – Continental Europe, Middle East and Africa Ewan Dickson +44 (0)20 7841 2954 ewan.dickson@opi.net

VP – North America and UK Chris Turness +44 (0)20 7841 2953 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 and Finance Designer Charlotte Gerhardt +44 (0)20 7841 2943 charlotte.gerhardt@opi.net

Operations & Production Eda Sismanoglu +44 (0)20 7841 2950 eda@opi.net

Accountant Jairo Paya +44 (0)20 7841 2956 jairo.paya@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

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No part of this magazine may be reproduced, copied, stored in an electronic retrieval system or transmitted save with written permission or in accordance with provision of the copyright designs and patents act of 1988. Stringent efforts have been made by Office Products International to ensure accuracy. However, due principally to the fact that data cannot always be verified, it is possible that some errors or omissions may occur. Office Products International cannot accept responsibility for such errors or omissions. Office Products International accepts no responsibility for comments made by contributing authors or interviewees that may offend.

I’ve become a bit wary of predicting the outcome of Staples’ attempted acquisition of Office Depot. It seems things have become political at the US Federal Trade Commission (FTC) and that it is intent on blocking the deal come what may. It now appears increasingly likely that only a major divestment of assets by Staples – over and above the $1.25 billion in contracts already offered – will save the day, and I’m not convinced Ron Sargent is prepared to go that far. If talks between Staples and the FTC remain in deadlock, we will probably be heading Large independent dealers in into a federal court hearing the US appear to be preparing that will start in March and then last for at least three the ground for a push into weeks, meaning it could be the national and large April at the earliest before a regional contracts arena final decision is made. Unless something unexpected happens before then… All this uncertainty is a godsend for other resellers. I’m sure Lyreco execs are rubbing their hands in glee at this protracted acquisition process, while large independent dealers in the US appear to be preparing the ground for a push into the national and large regional contracts arena. Against the backdrop of this transaction, the business supplies market continues to evolve, but it’s clear that progressive companies which are willing to embrace change or take chances are succeeding. A case in point is our Big Interview this month (page 18), which features the interesting rise of German online reseller Büromarkt Böttcher – a real ragsto-riches story... Andy Braithwaite Editor-at-large

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News n Round-up

News from opi.net ADVEO makes cuts in Spain Pan-European wholesaler ADVEO is eliminating about 120 posts at its Spanish subsidiary in an effort to reverse operating losses and strengthen its competitive position. The job reductions will be made at the wholesaler’s facilities in Madrid (Tres Cantos), Albacete and the Canary Islands, and will affect staff in the areas of sales, marketing, demand planning, IT, finance and accounting, admin and support services. The company highlighted that no reductions would be made in warehousing staff.

This latest round of cuts in Spain comes less than a year after the end of a staff reduction programme that saw 135 jobs eliminated between May 2014 and March 2015 as part of a company-wide restructuring plan. In addition, ADVEO said it was suspending its latest dividend payment after it had failed to meet the required conditions in its 2015 syndicated facility agreement.

Wholesalers

New name for Majuscule Leading French reseller Majuscule has begun 2016 under a new group name – Alkor. The new name – derived from Alcor, a star in the Great Bear constellation – encompasses the cooperative’s two reseller brands, Majuscule and Burolike, and will enable each of them to build a clearer, independent development strategy.

Wholesalers 6

OPI Magazine | February 2016

People

Mutschler steps down at Staples Jay Mutschler has decided to step down as President of Staples Australia and New Zealand. The experienced executive and 2011 City of Hope Spirit of Life honouree will leave the reseller this month after about four years in Australia. Staples Australia has been largely in turnaround mode Jay Mutschler during that time as it rebranded from Corporate Express, but sales and profitability have been improving recently. “My top priority was to transform the business to achieve financial stability, [and] with solid growth plans in place I am pleased to see that the business is well positioned to succeed,” he told OPI. “Additionally, I worked closely with the team to establish Staples as a true single-source solution. As a result, the company has seen an uptick in demand for products beyond traditional office supplies, including solutions for facilities and kitchens as well as business interiors.” Mutschler continued: “On a personal note, I have enjoyed living in Australia and working with such a talented Staples team, and I have formed many personal friendships. I will cherish my personal and professional memories here and will be destined to revisit in the coming years.” Taking over from Mutschler is Darren Fullerton, who started in mid-January. Fullerton has spent 18 years in Australia with PepsiCo and until October was the CEO of its Australia and New Zealand operations.

Bolt-on acquisition for Avery Avery has bought Mabel’s Labels, a North American personalised identification labels brand for children and families. Avery is paying $12 million in an all-cash deal for Mabel’s Labels which was founded 13 years ago in Ontario, Canada. Its sales for the 12 months to the end of March 2016 are expected to be $9.5 million, with an adjusted EBITDA of around $2.8 million. The company will continue to trade as a separate brand within the Avery portfolio. Julie Cole, Julie Ellis, Cynthia Esp and Tricia Mumby, the founders and principal shareholders of Mabel’s Labels, will remain with the business, and they and their teams will report to Allison Phillips, General Manager, Printable Media at Avery North America.

Vendors

News n Round-up

BOSS Federation CEO to retire Michael Gardner is to retire as CEO of UK trade association BOSS Federation in mid-2016. Gardner has been in the role for almost eight years and is credited with transforming the federation and leaving a legacy of significant membership growth and a wide range of value-added products, services and events to support members. “I believe this is an exciting and innovative industry and I have been privileged to have served it for the past eight years as CEO [of BOSS Federation],” said Gardner. “I have made many friends during my 25 years in the industry and, while retiring, I will stay in contact and assist in any way I can to support it [in the future].” BOSS also confirmed that Chairman Sean Starkey will be stepping down after this year’s annual general meeting. He will be succeeded by Stewart Superior’s Geoff Betts, who has been appointed Vice Chairman.

Michael Gardner

Associations

Newell in mega merger Newell Rubbermaid is to merge with consumer brands group Jarden. The new company – to be called Newell Brands – will be a $16 billion consumer goods powerhouse, and will be led by current Newell Rubbermaid CEO Mike Polk. The transaction is expected to close in the second quarter of 2016, assuming all the customary antitrust and shareholder approvals. Newell Rubbermaid shareholders will own 55% of the new company. On the face of it, the deal will not have an impact on Newell’s Writing division, but there are Jarden brands, such as Spontex Professional (cleaning and scouring products) and Waddington (disposable cutlery and plates), that could fit into the Rubbermaid Commercial unit.

Mergers & Acquisitions 8

OPI Magazine | February 2016

Facilities Management

MBO at CPD UK jan/san distributor CPD was acquired in a management buyout (MBO) at the end of 2015. Founder and former CEO Shaun Chatterton sold most of his shares in the company as he focuses on the Floreon bio-plastics business that was spun out from CPD in 2013. However, he will remain on the CPD board as a non-executive director. Leading the MBO – which was backed by funding from Barclays Bank – are CPD’s executive management team of Tony Bennett, Ian Warvill and Kirstie Lloyd.

Dealer Groups

Office Club appoints CEO UK dealer group Office Club has announced Toby Robins as its new CEO. Robins’ appointment comes after the untimely death of Office Club’s founder and CEO Mark Austen in September. Robins – a recognised authority on sustainability – founded UK dealer Greenworld Supplies in 1989. The business was merged with Wiles Group in 2006 to create Wiles Greenworld, a leading member of Office Club. He is a former Chairman of the NEMO Tony Robins dealer group, a Fellow of the Royal Society of Arts and a member of the Strategic Advisory Council of IEMA, a body that represents 15,000 professional environmental managers. Mark Austen’s widow Kim commented: “In Toby, we have found someone who shares Mark’s commitment to the independent channel and who has the skills and experience to build on Mark’s legacy.” Peter Duncan, interim CEO and Managing Director at Wiles Greenworld, added: “Having served on the board of NEMO for ten years and been elected Chairman, Toby has an understanding of the dynamics of running a dealer group and I am excited at the contribution I know he will make at Office Club.”

Large Resellers

Strong H1 for Askul Japanese reseller Askul has posted a strong set of sales and profit numbers for the first half of its financial year. Sales for the six months to the middle of November 2015 were up almost 14% year on year to ¥150 billion ($1.3 billion), with growth across all product categories in its B2B business and a 70% jump in sales at the LOHACO B2C e-commerce operation. Gross profit for the period grew almost 19% to reach 22.7% of sales – a 100 basis point improvement – while SG&A expenses fell 80 basis points to 19.7% of sales. Askul’s B2B unit – which represents about 90% of sales – grew by almost 10%, with strong double-digit increases in the living supplies, MRO and medical supplies categories. Stationery and furniture were up in the mid-single digits. The company added more than 1,400 private label SKUs in H1 and own brand products now account for 19.5% of B2B sales, up from 18.6% in the previous year.

news n Analysis

Crowds flock to CES OPI reports from CES in Las Vegas and picks out some new business supplies products

amazing 170,000 people descended on Las Vegas during the first week of January for the annual CES show, organised by the Consumer Technology Association (CTA), formerly the Consumer Electronics Association. The show was so big that there were two separate exhibition locations. One the eve of the event, the CTA unveiled its latest semi-annual industry report, US Consumer Technology Sales and Forecasts, which indicates that this sector is expected to generate a record $287 billion in retail revenues this year, fuelled by the increasingly connected world and the Internet of Things (IoT).

IoT potential Opportunities in IoT include connected speakers and wireless headphones, forecast to grow to 17.4 million units and 3.9 million units respectively in the US in 2016. Wearables is another fast-growing category led by the popularity of activity trackers and smartwatches, both of which are expected to grow in the double digits this year. On the flip-side, sellers of tablets and accessories beware. Tablet

Radio24

New products from Kensington included antitheft travel bags

Stabilo’s Digipen works on normal paper

sales are set to decline again in 2016, with the CTA predicting a 9% drop in unit sales to 60 million, while sales are forecast to drop 12%. There’s better news in the laptop category, especially in the hybrid convertible and detachable sub-category, with the number of devices sold estimated to rise by almost 50% to 11.7 million units. 3D printing is another sector that is set for explosive growth (see Hot Topic, page 26), and there were more than 60 3D print vendors at this year’s CES. These included UK firm Environmental Business Products which has partnered with imaging brand Polaroid to launch Polaroid-branded 3D printers in 15 European countries. Another well-known OP manufacturer at CES was ACCO, which launched a number of products under the Kensington brand as part of its strategy to develop more added-value, higher-end products and exit the commoditised smartphone and tablets accessories category. Kensington was named a 2016 CES Innovation Awards honouree for its SmartFit wireless charging laptop riser. Other products launched included a mountable docking station for laptops and an antitheft travel bag line called SecureTrek that taps into the growing trend of tech-laden business and holiday travellers. Germany-based writing instruments manufacturer Stabilo chose this year’s 2016 CES to unveil the Digipen, a pen that bridges the digital and analogue worlds. The Bluetooth-enabled

Humanscale’s OfficeIQ monitors sit/stand activity in the workplace pen is slightly different from other digital pens in that it is designed to function on normal paper and convert handwritten notes to digital text via an app. The Digipen is due to be released later this year and Stabilo is

[The US consumer technology] sector is expected to generate a record $287 billion in retail revenues this year targeting a number of user groups, in particular students. New York-based Humanscale was the only office furniture manufacturer at this year’s show. The company specialises in ergonomic workspace design and was promoting two new products, the M/Connect USB docking station and the OfficeIQ connected solution that works in conjunction with height-adjustable workstations. OfficeIQ gathers data on sit/stand use, calculates caloric expenditure and provides users with real-time feedback on workstation activity. Resellers into the health vertical will no doubt be interested in the introduction of Seal Shield’s Sky family of UV sanitisers, designed to kill more than 99.95% of pathogens in less than 30 seconds. Aimed at hospitals and medical establishments, the sanitisers disinfect products such as tablets and smartphones, devices which can harbour harmful bacteria and viruses. w w w.opi.net | OPI Magazine

News n Analysis

Positive buzz in European paper industry Despite market challenges, there is renewed optimism from Europe’s paper sector

2015

ended on a positive note for the European paper industry, reports paper consultancy firm EMGE. Many players in the market are now having a much more optimistic outlook, perhaps for the first time since the global economic downturn in 2008/2009. “I think that the negativity and inevitability of falling paper demand has finally been absorbed, many players have closed/converted machines, and people are now finally able to better understand, digest and accept the transition going on since the mid-2000s,” EMGE Managing Director Iwan Le Moine told OPI. EMGE held its biennial office paper conference in Vienna, Austria, in October, and Le Moine said the overall feeling among attendees was “very positive”. “Demand data was holding up well, lead times and prices were climbing and, generally, there was more of a buzz than in recent years,” he noted. Le Moine put the improving market conditions at the end of the year down to a number of macro and micro factors. These include – on the macro side – the stronger US economy, quantitative easing in the

EMGE founder Martin Glass

spell a triple whammy for European mills of lower domestic demand, tougher exports and more imports entering Europe.

Opportunities remain While the outlook is somewhat fragile, there are nevertheless opportunities in areas such as high-speed inkjet printing which is forecast to grow strongly over the next few years. In addition, even in traditional cut-size formats there are a raft of niche opportunities such as lower grammages, carton sizes aimed

“Where once only merchants served customers with paper from the mills, there are now more and more ways of buying paper” eurozone, the weaker euro, falling oil prices and a stronger advertising market. Micro factors comprise better capacity management, stronger operating rates, higher lead times and rising paper prices. EMGE expects these positive trends to continue into 2016, at least for the first half of the year. However, it is forecasting another slowdown towards the end of the year and into 2017 as price rises have a negative effect on demand, possibly leading to further overcapacity issues. If the euro strengthens versus the US dollar – which it might after the US election in November – this could

OPI Magazine | February 2016

specifically at internet retailers and various offers for the retail sector. A major development in the European paper market in 2015, of course, was the collapse of merchant PaperlinX. EMGE expects to see further structural changes in office paper distribution channels in the coming years, but does not necessarily point to a simplification in the model. “Where once only merchants served customers with paper from the mills, there are now more and more ways of buying paper, either direct or indirect,” said Le Moine. “With all the niche paper markets and speciality

grades, meaning smaller tonnages and a bigger and wider customer matrix, the distribution channel is likely to get even more complicated.”

US antidUmping deciSion dUe Soon On or around 22 February 2016, the US International Trade Commission (ITC) is due to announce its decision on whether or not to maintain antidumping (AD) and countervailing duties (CVD) on imports of uncoated paper from Australia, Brazil, China, Indonesia and Portugal. The US Department of Commerce (DoC) announced its own final determinations on 11 January, setting the levels of AD and CVD that will be imposed on importers should the ITC make an affirmative final determination. Dumping margins include a rate of 222.46% for Paper Australia and 7.8% for Portucel. Reacting to the DoC’s decision, Portucel issued a statement in which it said: “Although this margin is significantly lower than the preliminary margin determined on 20 August, Portucel continues to fully disagree with the enforcement of any antidumping margin and will use all the procedural means available to demonstrate that this measure is unjustified.” All eyes will now be on the ITC to see if these duties will be enforced.

Read more about the latest paper market trends in our Category Analysis in the forthcoming April issue of OPI.

In this issue, OPI asked some of the important players in the security and data protection sector what is fuelling demand for products. Below is a selection of their answers. (For a full analysis of the security and data protection industry, turn to ‘Beating the Cyber Crooks’ on page 48) A key trend relates to the proliferation of hard drives and solid-state memory in many electronic devices, which has led to the increasing awareness of electronic media destruction. Many paper shredders will destroy optical media and ID/credit cards, but hard drive shredders are now available in response to increased demand from organisations that want to destroy hard drives and other electronic data carriers in-house. Mark Harper, Head of Office Technology Sales, HSM UK & Ireland In shredders, there is a definite switch to cross-cut, higher DIN-level security models, which basically cut paper into smaller pieces than strip-cut models and help to vastly reduce the risk of fraudulent activity. Nathan Dawes, Hardware Product Manager, VOW Most businesses in the US and Western Europe have transitioned away from the long-term storage of documents because of document software solutions and, more importantly, because many documents now have entirely digital lifecycles. Long-term paper storage will likely be more for speciality use as opposed to being a central part of business processes and workflow. This makes digital storage with real-time back-up and recovery very important. Brendan Morse, Research Analyst, Office Technology and Services Group, InfoTrends

2 billion

Number of mobile internet users in 2016

20,000

Number of new products launched at CES 2016

30 billion Projected number of connected ‘things’ by 2020

News ■ And finally...

Comment

44%

Percentage of the global population that will have access to the internet in 2016

TWEET CHAT follow us on Twitter @OPInews, @andy_opi

@CES Connected is used more than any other word at #CES2016 in my opinion – Kent Larson @CES @Samsungtweets coins a new term iotivity #CES2016 @CES Digital isn’t a destination. It’s a foundation. What will differentiate you is understanding the data @GinniRometty #CES2016 @CES Some booths are so large they need their own map @Sony #CES2016

SNAP SHOT Mcor Technologies CEO Conor MacCormack launched the world’s first full-colour 3D printer for the desktop at CES 2016. The Mcor ARKe will be available in Q2 this year and according to the company offers full, photo-realistic colour and is cost-effective, eco-friendly and easy to use. (see News Analysis on page 11 for more details on CES 2016).

In higher capacity office deskside shredders, there is a developing demand for the larger capacity machines to have extended duty cycles. Some are capable of continuous shredding for an hour; a few are capable of running continuously. This demand indicates that we are all taking shredding seriously – and shredding more than ever before. Clive Humm, Product Manager, Snopake Brands

Don’t forget to take part in the discussions on the OPI LinkedIn page

opi.net poll results Will Staples successfully challenge the Federal Trade Commission and acquire Office Depot?

Yes 36% No 64% w w w.opi.net | OPI Magazine

Big Interview | Udo Böttcher

n r o c a e l t t i l From

k a o y t h g i to m

BÜROMARKT

Böttcher is one of the largest online OP players in the German market, right up there with the biggest and best of them. Most impressively, it continues to post phenomenal growth rates – 23% in 2014 and an astonishing 40% in 2015. And that’s not from a small base – the company broke through the F100 million barrier ($109 million) in 2014, more than small fry compared with the likes of Staples, Printus and Viking. Success hasn’t happened overnight, however. Büromarkt Böttcher celebrated its 25th anniversary in 2015, so a timely occasion for OPI’s Heike Dieckmann to catch up with company founder and CEO Udo Böttcher and take a look back at what makes the company one of the most talked-about online resellers. OPI: Let’s start with Udo Böttcher the man, rather than your company. What’s your background? Udo Böttcher: I was brought up in a working-class family as one of three children in East Germany, part of what was then the communist Eastern Bloc. From a very early age – as soon as I started school – my parents sent me to gymnastics classes. When I was 11, I began attending a specialist children’s sports academy where I trained for up to six hours a day, six days a week. I was a child athlete and won numerous competitions during my teenage years. I was the East German junior gymnastics champion and won Spartakiad medals on several occasions.

OPI Magazine | February 2016

The story of Udo Böttcher and his company Büromarkt Böttcher is remarkable. It tells a heart-warming tale of grit and determination, of foresight and true entrepreneurial spirit. And of resounding success… OPI: That’s a very long way from selling office products. What happened? UB: I had a knee injury when I was 22 and had to give up my sporting career. I started training to be a gymnastics coach instead, but soon after the Berlin Wall came down in 1989 I lost my job. I started organising and attending flea markets and there sold a number of things that I made myself out of plaster of Paris – garden gnomes and picture frames, for example. To advertise my services on flyers, etc, I bought a photocopier. The flea market idea worked well for a while until the competition from what was formerly West Germany became too fierce. At that point I had no idea about tax law, economics, marketing – anything you need in business. What I did have was plenty of stamina and discipline – it’s what you learn in the sporting environment I grew up in. And I still had my photocopier. So that’s what I used to make money – take photocopies for other people.

Büromarkt Böttcher | Big Interview

At the same time, I did a two-year course to become qualified in tax law. Initially, my wife and I used our flat as a base, but after a while we set up a small copy shop in the town of Jena. We then slowly added office products to our offering. OPI: How long have you had the name Büromarkt Böttcher? UB: Since 1994. Before that we were called Kopierservice Böttcher, reflecting the early importance of the copy shop business. OPI: What were the main challenges for you during the early days and when Germany became a unified country? UB: The biggest challenge was acquiring the knowledge we needed. Like I said, I didn’t know anything about free-market economics and taxation or indeed about market analysis, advertising, etc. OPI: When did you decide to make Büromarkt Böttcher an online business? UB: Any entrepreneur wants to be on the cutting edge of what’s going on in their particular industry and I was – and still am – no different. We decided in the late 1990s to create an online shop for office supplies. It was a work in progress to begin with and we finally became operational with the online shop in 2002. OPI: You must have been something of a pioneer with the concept at that time in the German market. What were the main challenges initially? UB: The biggest challenge back then – and still now actually – is to provide an outstanding customer experience which guarantees customer satisfaction and retention. And yes, you’re right. In 2002 it was certainly not the norm in Germany to sell online. Mail order was by far the preferred way of shopping. We started off slowly, of course, and in the early years, we only generated a maximum of 2% of our revenues online – the rest still came from the catalogue. OPI: Do you still have a print catalogue today? UB: Yes, we do. It’s revised and reprinted twice a year and sent to our customer base. OPI: How is Büromarkt Böttcher structured? UB: The Böttcher group of companies today consists of the online shop Büromarkt Böttcher AG, the logistics business, Werbe-Markt Böttcher (an advertising division) and Adwords-Solutions. In total, we have about 300 staff, but the majority work on the logistics side.

w w w.opi.net | OPI Magazine

Big Interview | Udo Böttcher OPI: You are a ‘Aktiengesellschaft’ or ‘AG’ – does that mean that your staff have shares in the company? UB: No, they don’t. What our employees do get, however, is a share of the profits we generate. For the financial year 2015, for example, we expect a profit of H1.5 million. This means that any member of staff who has been with the company for at least a year will get a gross bonus of up to H8,000. OPI: Do you foresee the company being listed on the stock exchange? UB: Not at the moment. We are in a very good position financially and are able to raise capital for new investments from within the company. OPI: Who are your typical customers? UB: About 93% of our customer base is B2B, with only about 7% coming from the B2C sector. Within the B2B segment, we deliver to small and medium-sized companies as well as to large corporate enterprises. OPI: Given that broad customer base, who do you compete with? UB: Initially, our competitors were hugely varied and included small, regional operators as well as the big mail order companies like Printus and Viking. Today, our head-to-head competitors are mainly the big German and global OP players and, of course, Amazon. OPI: How dominant are the global OP operators like Staples and Lyreco in the German market? UB: They are big competitors, but we believe we’re more than capable of holding our own. And as our figures show, no other reseller in the market is growing at the same rate as we are, so we’re clearly doing something right. OPI: Tell me about your revenues. UB: Our revenues have steadily grown over the years. In 2014, we breached the H100 million ($109 million) barrier for the first time. That in itself was a real milestone, but what was perhaps even more impressive for us is that we increased sales by 23% compared to the previous year. Our forecasts of 25% for last year have been wildly exceeded – we finished 2015 with total revenues of H140 million, so had a sales increase of 40%. OPI: That’s phenomenal. How do you generate this type of growth when the overall market is fairly flat? UB: We invest a huge amount of capital into marketing activities. We look at new

OPI Magazine | February 2016

“Our speed to market in everything we do is a real advantage. We can make decisions quickly and then implement the consequences of these decisions very speedily as well”

advertising opportunities all the time and regularly introduce new campaigns. We also have 15 years of experience of working online and have conducted plenty of A/B testing, so we know fairly well how and where to find new customers and generate more revenues. As a result of our varied advertising campaigns, we are very successful at attracting new customers while at the same time holding on to our established base. OPI: So what’s your core differentiating factor? What do you do that others don’t? UB: Our speed to market in everything we do is a real advantage. We can make decisions quickly and then implement the consequences of these decisions very speedily as well. Another real USP for us is that we’re hugely experienced in the internet business. We’ve been doing this for 15 years and, as such, have gained some valuable experience that others just don’t have. Lastly, outstanding customer service and a user-friendly online shop are vital. OPI: Can particularly the smaller players keep up with today’s tech requirements? UB: The market overall is relatively stable for now. There are a handful of large, powerful players and a multitude of smaller operators. But you’re right. It’s increasingly difficult for smaller operators to defend their territory

Big Interview | Udo Böttcher against the big players. It’s particularly challenging for them in terms of pricing and online strategy. And the trend, as I see it, is definitely more and more towards online shopping. As such, I believe that the big players will continue to gain more market share while the smaller ones will lose out. I don’t see too many opportunities for some of these smaller firms, as just having a simple online presence isn’t good enough anymore. You need years of experience

“Just having a simple online presence isn’t good enough anymore” as well as A/B analysis and testing, not to mention considerable skills and knowledge in the area of SEO, SEM or other online marketing tools. All this takes a long time to acquire and perfect. But it’s more than that. Any company that wants to play a real part in the online game not only needs the know-how, but also a sizeable amount of financial as well as personnel resources. OPI: How can Büromarkt Böttcher continue to grow at its current rate in the future? Do you have any acquisition plans? UB: Of course we want to continue to grow and I’m sure that we will. The capacity is there and our logistics operation is set up for more orders. That’s all I can say. OPI: Do you have any meaningful relationships with the wholesalers? UB: We receive about 98% of all goods directly from the vendors. As such, we haven’t got a really deep relationship with any of the wholesalers, although we get a few SKUs from ADVEO and Iden. That said, they might play a much bigger role for us in the future as our warehouse will reach capacity at some stage. When that happens we will look to work very closely with one or two wholesalers. We’ve already started negotiations with one of them. It’s early days yet, but in 3-4 years’ time we could be looking at a very different picture. OPI: I guess those negotiations also coincide with the need to offer an ever-wider range of products? UB: Our product portfolio has grown immensely over the years. We started out with traditional products such as copier paper, pens and clear plastic wallets.

OPI Magazine | February 2016

Now we sell 35,000 SKUs, branching out ever more into the wider facilities management categories, including breakroom, cleaning, food and maintenance. We’re hoping to extract another H200 million from the market over the next 3-4 years and offer our customers all the products that they could possibly want. OPI: How are the manufacturers bearing up in the face of a changing – and consolidating – industry? UB: Quite honestly, some manufacturers still haven’t grasped how the internet works and which resellers will dominate the market in the next few years. Many vendors are strong advocates of a field sales force and I’m sure that’s still important. But in addition, we need online programmes, such as reseller-focused email marketing, social media initiatives and so on, and we are nowhere near where we need to be with the manufacturers here. And the online content of many products – or lack thereof – is still a huge problem. OPI: What’s your coverage in Germany? UB: We have over one million customers in Germany. We’re completely nationwide and deliver within 24 hours. OPI: Do you have any expansion plans to take Büromarkt Böttcher abroad? UB: No, not in the next few years. OPI: Paperworld is upon us, so I have to ask: how important is the fair for you? UB: We are always there, but Paperworld is definitely not as important for us now as it once was. We basically go for the small talk with the vendors. OPI: What’s your prognosis for Büromarkt Böttcher and the business supplies sector in Germany overall for the next ten years? UB: Ten years is too far ahead, I think. What I would say is that Büromarkt Böttcher will be one of the few operators in the German market over the next five years that will grow revenues as well as market share. Our plan is to triple our 2014 revenues in that time period. In my opinion, companies like Printus will also have a real impact and continue to grow. And, as I said before, perhaps Google will become a contender in the next five years. We certainly have to prepare for that possibility. One thing is certain: anybody who wants to grow in this sector has to invest first to reap the benefits.

Büromarkt Böttcher milestones 1990 – Company founded 1995 – Creation of the wholesale logistics business for office supplies; move into a 300 m2 facility in Jena 1998 – New HQ and move into a 1,300 m2 warehouse 2006 – New HQ and move into a 6,000 m2 warehouse 2014 – H100 million ($109 million) revenue barrier breached; additional new warehouse becomes operational, creating a combined logistics capacity of 20,400 m² 2015 – 25th company anniversary and new record revenue growth of 40% to H140 million

Hot Topic | 3D Printing

There is enormous potential for office resellers to tap into the fast-growing 3D printing market, as OPI Editor-at-large Andy Braithwaite discovers…

much-appreciated presentation at the recent OPI European Forum in London was one on 3D printing given by Actionable Intelligence’s Charles Brewer and Michael Nadeau. And it’s certainly easy to see why this category is capturing the interest of B2B resellers. According to the Wohlers Report 2015, published annually by US 3D specialist consultancy firm Wohlers Associates, the global 3D printing industry will grow from just over $5 billion in 2015 to more than $21 billion in 2020, and projections for annual growth range from 20% to more than 30%. There are plenty of other figures that back up this enormous potential (see ‘3D by numbers’ , page 27). But those numbers don’t tell the whole story for business supplies resellers, as Nadeau explains: “The opportunity for them has emerged only in the past couple of years with the availability of professional-level, low-cost machines. “As a result, markets such as education, manufacturing and engineering/design have embraced 3D printing and are using the technology to lower costs and accelerate processes associated with product development. The technology is becoming mainstream for them, and I believe in the next few years you can say the same for marketing/media, packaging, healthcare and other markets.” Traditional office resellers have been making tentative steps into 3D printing in the past year or two. Staples, for example, has been developing 3D printing as a service on both sides of the Atlantic as well as selling

OPI Magazine | February 2016

printers and supplies; Australia’s Officeworks recently opened a 3D demonstration area in one of its Melbourne stores; German dealer group Büroring is developing a 3D print offering; wholesalers such as ADVEO, VOW and Exertis Supplies have all begun offering 3D machines to their customers since 2015. Now, as perceptions of the category as being too niche, too complex and/or too expensive change, those that have entered the category already are likely to see that investment pay off as demand skyrockets.

Brand proliferation The proliferation of 3D print brands in the consumer/small business end of the market over the past year is one of the key trends in the category. At this year’s CES show in Las Vegas, for example, there were more than 60 3D print vendors (see News Analysis, page 11). Indeed, leading manufacturer 3D Systems announced at the end of 2015 that it was exiting this segment of the market altogether to focus on high-end, industrial solutions, a sign of how quickly the category is evolving. “There is certainly no shortage of brands to choose from – new brands are coming to market on a monthly basis, and I don’t see that slowing down in the near term – but finding one that can support the channel could be a challenge,” argues Nadeau. “My advice for resellers is to look for brands that can provide the unit volume they need, have proper marketing expertise, can support both the reseller and its customers, and can

3D Printing | Hot Topic articulate a product strategy and show they have the means to execute it.” There is also the question of how the traditional hardcopy print OEMs are approaching (or are going to approach) the 3D market. 3D is one of the key growth areas that HP is focusing on and its first products are set to be unveiled later this year; Canon announced its first 3D prototype last October; Epson is studying the market and expects to have products by 2017; and Ricoh and Olivetti have developed 3D printers with established 3D OEM suppliers. So there’s

“If I were an office dealer looking to become a 3D print reseller, I’d find a current customer that has been using 3D printing” plenty of activity, but almost exclusively in the mid-range ($30,000-$100,000) of the professional market. UK-based Exertis Supplies launched its initial 3D printing line in May 2015, and now offers machines that range from recommended retail prices of just £299 ($450) to £2,500. “We have been very pleased by the growth in sales and have had a strong start to 2016,” notes Product Manager Ben Appleby. “We have focused our offering around three major brands, Ultimaker, XYZ and Robox, which gives us a selection of affordable and easy-to-use models suitable for a wide range of applications in education, manufacturing and commercial environments,” he adds. Focusing on or specialising in specific verticals or niches is certainly one way for resellers to approach the 3D printing category in order to provide a value-added proposition to customers. “The decision by resellers to specialise depends on the make-up of the regional markets they serve,” says Nadeau. “A region that has a high concentration of higher education establishments, for example, will require a reseller to offer solutions that fit that market. Many educational programmes are linked to local industry needs, so a reseller for this market will also need to understand how local manufacturing companies are using 3D.” He continues: “Resellers have to know which of their existing customers are using, or will likely use, 3D printers and for which applications. Then it’s doing the homework to find the brands and suppliers that best meet the need of their potential markets.

“If I were an office dealer looking to become a 3D print reseller, I’d find a current customer that has been using 3D printing and learn what they are creating and all the tools, supplies, materials and software they use to do so. Customers will want a one-stop shop for all of this, and it opens the door to competition if you don’t carry, for example, the right kind of post-processing equipment or modelling software. “I would also start slowly by targeting the most promising niches within my customer base and then branch out as I build up my experience and ability to support what I sell.”

Wide range of applications This pragmatic approach is something that Exertis Supplies’ Appleby is seeing. “To date we have found that there is no such thing as a ‘typical’ reseller,” he notes. “Due to the number of potential applications across so many environments, it is much more about a reseller recognising an opportunity and then, if needed, asking us to help in recommending and supporting the sales of the correct models. In the past couple of months, our dealers have sold printers to literally anyone from a school to a car manufacturer.” Then there is the question of making money on 3D supplies versus the machines themselves. The relatively low installed device base and high cost of machines means that it isn’t a ‘razor and blades’ marketing model yet, but is likely to move in that direction as more machines are sold and their prices continue to come down. Most consumer and lower-end 3D printers use some kind of filament technology, with a number of leading third-party filament

3D by numbers Forecasts for the global 3D printing market vary depending on which report you read. Nevertheless, all the numbers point to rapid growth over the next few years. Worldwide shipments of 3D printers rose 35% year on year during the first nine months of 2015, according to a recent report by IT market research company Context. Almost 174,000 units were shipped during this period, with 95% of these personal/desktop devices mostly priced below $5,000. For the personal/ desktop sector, companies recognise that general consumer adoption for these devices may be many years away and efforts in this space will be refocused toward engineers, architects, small businesses and educational institutions, notes Context. Gartner, meanwhile, says that worldwide shipments will double in 2016 to reach almost 500,000 units, and shipments will more than double each year between 2016 and 2019. Of particular note, adds Gartner, are the up-to-$1,000 and $1,001-$2,500 price bands, which are dominated by material extrusion devices. 3D printers costing less than $1,000 will make up 25% of the total of these two bands in 2015, but will grow to 41% of the $1-$2,500 range by 2019. The primary market drivers for consumer 3D printers costing under $2,500 are not household purchases, but acquisitions of low-cost devices by schools and universities, suggests Gartner.

w w w.opi.net | OPI Magazine

3D Printing | Hot Topic brands emerging such as eSun, taulman3D, NinjaTek and Verbatim, and many ‘no-name’ brands becoming more widely available. However, while hardcopy printing is largely limited to black ink and a few colours, 3D customers might need access to dozens of material types to meet the requirements for their final products, especially in a more professional setting. “This is why it’s important for resellers to understand their market and how their customers use 3D printing,” explains Nadeau. “That way, they can find the right mix of supplies to meet, say, 80% of their customers’ needs. The smart reseller will become a

“Most people in our channel have now seen and experienced 3D print, but still lack the knowledge to understand the opportunity and potential” trusted advisor on which materials will provide the desired results.” Dealers that may be worried about the reliability of 3D printers – and possible servicing issues – should not worry, according to Appleby. “The reliability of 3D printing devices has improved over recent years and should not be an area of concern,” he states. “There is no servicing requirement for any 3D print product we sell. All that is needed are a few simple maintenance steps taking no more than five minutes once or twice a month.” It is clear that resellers will require a certain level of support and training to successfully sell 3D products, just as they do in other specialist categories. This is something that manufacturers and wholesalers have not been neglecting. ADVEO, which has a pan-European agreement with UK manufacturer Environmental Business Products (EBP) for its St3Di brand of machines and supplies, has received product training in its different markets from the vendor. EBP also has a deal with VOW and this has led to 3D expert Jon Mayers recently joining the wholesaler as

a funded appointment. It will serve to bolster VOW’s (and the wider EVO Group’s) in-house expertise in the category and to expand upon its 2015 launch into the category. “Providing education and support to resellers is hugely important,” says VOW’s Head of Technology Gilly Blackburn. “I think most people in our channel have now seen and experienced 3D print, but still lack the knowledge to understand the opportunity and potential. It’s critical that we continue to educate dealers on the applications.” She continues: “We’ve held a number of events, but probably the most successful was a reseller day with St3Di. The day included presentations on the market and how to identify opportunities, hints and tips on selling the products, along with good old-fashioned practical training. I think this helped resellers more fully understand the technology and the placement within their customer base. We certainly saw an increase in business from those who attended.” Exertis Supplies offers sales team training, end-user demonstrations, marketing support and an installation service for end users. “This enhances confidence in the product category because we do offer support every step of the way – pre, during and post-sale,” highlights Appleby.

Window of opportunity Amy Horn, Category Director at EBP, says: “Education and awareness are key, and as investment into explaining the game-changing benefits of 3D printers continues to grow – whether that be prototyping for manufacturers, bespoke solutions for service providers, increased value-add and differentiation for all, or even creative new ideas for the home and leisure user – we see 3D printers growing exponentially on a global scale.” She adds: “In addition, the introduction of 3D modelling into the National Curriculum across the UK has resulted in exponential demand for 3D printers and consumables in this sector. Consequently, we continue to see excellent growth as there is clear demand for a plug-and-play solution.” As Exertis Supplies’ Appleby concludes, there is currently a ‘window of opportunity’ for business supplies resellers in the 3D space, but they should not wait too much longer. “The window is now. Resellers need to get involved sooner rather than later or they could find it difficult to become established as a credible reseller of 3D print.” Read an extended interview on 3D printing with Actionable Intelligence’s Michael Nadeau exclusively on opi.net

w w w.opi.net | OPI Magazine

Dealer Focus | special Feature

Big accounts within As

part of Point Nationwide, which has evolved into a joint venture between TriMega Purchasing Association and Independent Stationers and is now called EPIC Business Essentials, I have had the pleasure of being on the front lines of what our channel calls ‘enterprise accounts’. Enterprise customers are medium-to-large end users that have multiple locations and a regional or national footprint. With few exceptions, this segment has been an extremely difficult market for the independent dealer community going all the way back to the mid-1980s, and much of the market share over the years has been basically ceded to our publicly-traded competition. But, as they say, the only constant in life is change and the world has indeed changed rather quickly, with the vertical going from an unbelievable seven national players – USOP, Corporate Express, BT, Boise, OfficeMax, Office Depot and Staples – to what I can now characterise as ‘one and a half’. Additionally, with the merger between Office Depot and Staples blocked at least through March of this year – and maybe permanently – we expect to see both show continued dysfunction and lack of focus as they try to figure out

Venice Paparazzi

Grady Taylor

TriMega EVP Grady Taylor talks about enterprise accounts – historically a no-go area for most independents – and the opportunities the currently stalled Staples/Office Depot merger opens in this segment whether there is an end game or not as a merged entity. Staples will of course survive, but Depot, in my view, looks to be in something of a death spiral. I have old friends at Depot and they were looking at the merger as a figurative lifeboat for their company. Following the FTC’s decision, their electronic grapevine is now full of ‘What now’s?’ as they try to right their figurative ship. I have also received employment feelers through LinkedIn, etc from almost a dozen people from both companies – one that may about to become $250 million richer and the other $250 million poorer.

Grand-scale opportunities For independents though, all of this means opportunity on a grand scale. One influential central California dealer told me that as long as there was merger distraction, it provided his company with positive prospects. I could not agree more. And frankly, I believe that is how everyone in the independent channel should be feeling at this moment. The key question, though, is how to successfully exploit our competition’s current weaknesses. Some dealers have the acumen from a marketing, systems and cost-of-goods perspective, but many do not. The good news is that there is help in the independent channel – you just have to ask for it. There are

plenty of resources available for marketing, proposals, distribution points, systems infrastructure, cost-of-goods, etc. But more importantly, independent dealers need to go out and ask for the opportunity to make proposals for their business. There has never been a better time to offer enterprise account decision-makers the opportunity for a choice. And by choosing the independent dealer, they are supporting their local economies, small business and finding out what exemplary service is all about. There are numerous aspects that independents are intimated by: ■ Difficult and detailed requests for proposals ■ Lack of experienced enterprise account sales people ■ No single integrated front end for ordering ■ Sophisticated usage and summary invoice reporting ■ National customer service groups ■ Complicated ‘punchout’ customers ■ Access to ‘piggyback’ contracts for selling to government and educational entities The good news is that the independent channel has resources like never before to help them grow their business. So as 2016 gets underway, it’s a good time to build a plan for your dealership to exploit the enterprise account opportunity. w w w.opi.net | OPI Magazine

Research | The Spider Report

The

Report:

complex simplicity

Office products are increasingly bought online. Why is that and what are the must-haves for OP buyers? The answers are simple and complex in equal measure, as The Spider Report shows...

OPI

purchasers need above all is reliable and Martin Wilde Associates functionality from their online (MWA) have published sources – at a competitive price. their latest research study – The Primarily, this requires any online Spider Report – which is focused on supplier to reliably and consistently discovering the needs and attitudes of fulfil the fundamental basics that online office products buyers in any successful OP reseller the US and the UK. should offer. It is only The results from the Each once these have been UK volume of this of these met that the supplier’s new study show that authoritative, unique website itself while online OP reports is available becomes important, buyers hold a wide for $3,750 (£2,500) per and once again the variety of positions country report. customer’s focus in their companies, To order your copy here is chiefly on virtually all of online, go to www. the supplier getting them spend only a opi.net/spider the basics right, rather small proportion of than necessarily offering a their time purchasing dazzling web solution. office products. As a result, Of course, to achieve this kind the reason they choose to buy of apparent simplicity requires them online is mainly because of a great deal of complex and convenience, speed and – most of detailed preparation. The OPI/ all – a perception of being offered a MWA research offers guidance on low price (see Fig 1 below). the functions and services that any Indeed, the The Spider Report online resellers must focus their clearly shows that what online OP

■ ■ ■ ■ ■ ■ ■

It’s cheaper It’s quicker It’s easier/more conveinent It’s easer to find products Suppliers only offer us this option Product range available Company policy is to buy online

Source: MWA

Number of respondents

Fig 1: Why do you buy OP online?

OPI Magazine | February 2016

efforts on delivering in order to meet the expectations of online OP purchasers. The Spider Report comprises two separate reports of approximately 100 pages each – one on the US and one on the UK – each featuring the results of in-depth interviews with 400 online B2B end-user OP buyers in each country. Quotas were applied to the research sample to ensure that a range of all business sizes and activities was covered, and answers to the following and other questions could be analysed in depth:  Which OP items are the most likely to be purchased online?  What share of core OP items is currently being purchased online? What is this share expected to be throughout 2016?  Which online suppliers are used to purchase each OP category?  What are the key factors that drive the selection of an online supplier?  Why are online purchases abandoned or online suppliers discarded?  How do buyers search for products?  What are the main problems encountered when searching for products online?  What spend or credit limits are imposed on online purchases?  Are manufacturer brands more important to online buyers?  How important is free delivery and what minimum spend is acceptable in order to get free delivery? The Spider Report is designed to give vendors and distributors the tools they need to review, assess and update their online strategy to meet the needs of today’s online office products B2B purchaser.

Interview | Paperworld

Committed to the office channel Paperworld’s long-term goal is to be the go-to platform for both the traditional stationery and B2B office supplies channels, confirms the trade fair’s organiser Messe Frankfurt Over the past few years, Paperworld has come in for criticism for not adapting to the changes in the office supplies market. However, as Messe Frankfurt‘s VP of Consumer Goods & Entertainment Cordelia von Gymnich states, the show is fully committed to the office channel. OPI: Firstly, what’s new for Paperworld 2016? Cordelia von Gymnich: On the manufacturing side, more than 1,500 exhibitors will once again present a broad spectrum of product innovations for both the office supplies and stationery sectors. In the Remanexpo section in Hall 6.0, we are introducing a matchmaking programme this year, designed to support our customers’ business activities. In Hall 5.1, members of the German Association of Greetings Cards Manufacturers and Publishers (AVG) will show their products for the first time in the new Greetings Card Centre of Expertise. OPI: What is your relationship now with the PBS-Markenindustrie association? You tried to establish a smaller booth format in Hall 3.1, but that did not materialise – that must have been a disappointment for you. Could you please remind us why that didn’t work out? CvG: The Paperworld Plaza concept, which we implement every two years, was given an extraordinarily good reception in 2015 and this prompted us to offer a new format for members of the PBS-Markenindustrie association in the intervening years. In close cooperation with a working group, we developed a pavilion catering specifically for the needs of the association’s members. Our idea was to offer exhibition space that

OPI Magazine | February 2016

allows efficient and cost-effective presentation as well as being an attractive port of call for retailers. Many of the association’s brand manufacturers were enthusiastic about our innovative offer, but unfortunately not all of them. Therefore, together with the working group, we decided not to offer the new format in 2016. However, we will offer a pavilion again in 2018. Sometimes it is necessary to give the sector a bit more time and I am confident that we have a good chance of seeing our concept implemented in two years’ time. OPI: What are the plans for 2017 in terms of a return of the Plaza concept we saw in 2015? CvG: The great success of 2015 showed that we were right on target with the introduction of the Plaza concept in Hall 3.1. Hence, we are already sure that we will be holding it again in 2017. OPI: There was a new German stationery show – Insights-X – in 2015. What is your view on this event and what impact has it had on exhibitor attendance at Paperworld 2016? CvG: There are many events in the stationery market – especially regional consumer goods events such as Nordstil – and also in other countries, including the UK, which are aimed at the local market. These

events are regularly attended by members of the trade and fulfil a certain function. With its 1,500 exhibitors from almost 60 countries and around 40,000 visitors, Paperworld is a paper, office supplies and stationery fair oriented towards the international market. Its size alone means it has a very special position in the market and is the sector’s event of the year for doing good business and receiving future-oriented impulses. We believe that, given the ongoing process of concentration in the sector and the challenges posed by digitisation, etc, the market for paper, office supplies and stationery will not produce another fair with this orientation. OPI: To what extent would you agree that the Paperworld date of the last weekend in January is too late for the forthcoming back-to-school season? CvG: We have given much thought to the date question over recent years and polled manufacturers and buyers accordingly. The timing of Paperworld is the biggest common denominator relating to the different needs of all participants in the sector who do business not only with school articles but also, in particular, with office supplies. Major buyers generally order school articles in the summer for the new year – smaller retailers, however, place their orders at a significantly later time. OPI: So are you still committed to the end of January date?

Paperworld | Interview CvG: In addition to the positive feedback from our poll, there are other reasons that, from our point of view, are in favour of retaining the January dates. Our experience shows that both buyers and manufacturers are more optimistic and less reluctant to order following the generally good period of business at the end of the year than at consumer goods fairs in the second half of the year. Moreover, most major buyers and manufacturers place their orders at the sourcing and supplier fairs in Asia in the late summer and autumn, which is another good reason for us to hold Paperworld at the beginning of the year. OPI: When you look at stationery retailing versus B2B office supplies, what for you are the challenges of catering to both of these channels? CvG: Paperworld is the leading trade fair for the paper, office supplies and stationery sector because it has succeeded in combining the two main attributes of the sector (office and stationery).

demonstrates that we offer exhibitors and suppliers what they need. At the fair, it is possible to exchange information and ideas face-to-face – something that is not possible on the internet. Furthermore, we provide a comprehensive overview of the latest products and developments in the office supplies field. And that’s something you will only find at Paperworld in Frankfurt. OPI: I see that ACCO is participating this year – which is encouraging for you – but many of the big office supply names are still missing. What are you doing to try and get them to exhibit and how confident are you that they will return? CvG: Many other global brands have registered for Paperworld 2016 in addition to ACCO, including HSM, Stylex, grupo Portucel Soporcel, Bi-silque, Colop, Zettler, Kores, Lediberg and Olympia. Some exhibitors come every two years so we already know that they will be taking part in Paperworld again in 2017.

“Paperworld [...] has succeeded in combining the two main attributes of the [paper, office supplies and stationery] sector – office and stationery” However, this is no easy task because both buyers and manufacturers in the two channels have different expectations of a market that is developing in various directions due to the different consumer environments. We create a link between the two channels, especially with our complementary programme of events that takes account of the multifarious interests of the two product segments. OPI: How attractive do you think the current format is for office supply resellers and exhibitors? CvG: Paperworld is distinguished by a spectrum of office supplies unrivalled worldwide in horizontal and vertical terms. It is the international meeting place for the sector. The large number of visitors

The Paperworld team maintains close contacts with our previous exhibitors – and, of course, with potential new ones – and our job is to convince them that Paperworld is a valuable tool for their marketing mix. We expect to welcome a similar number of exhibitors for the office segment in 2016 as in recent years. OPI: Strategically, to what extent are you committed to serving both of these channels (stationery retailing and B2B office supplies) going forward? CvG: Our aim is to provide a home for both channels at Paperworld and to include them in our concept. In the recent past we have, for example, been able to activate numerous new groups of buyers for Paperworld – from book and toy sellers, which include stationery

articles as a supplementary product line, to furniture and food retailers that are paying more attention to the office segment. Naturally, we will continue to take a close look at both channels with regard to 2017 to best address their needs. OPI: In the office supply channel, we see resellers diversifying out of traditional stationery into other categories such as cleaning, breakroom, safety products, furniture, etc. When will these types of products have a place at Paperworld? CvG: Some of the products mentioned can already be seen at Paperworld. In the medium term, we will have to take even greater account of this development and are currently working on new solutions. OPI: We have seen a lot of consolidation in the office and stationery market over the past few years. Do you think the same needs to happen in the trade show sector to reflect these changes? If so, what part do you think Messe Frankfurt/ Paperworld could play in this? CvG: Paperworld is a mirror image of the sector. In other words, changes in the sector lead to changes in Paperworld. Therefore, we now hold an event that has changed greatly over the past two decades. And if we see that the sector has developed new product groups, we will react in exactly the same way as if in, say, ten years’ time, it becomes apparent that certain products are no longer in demand in the market – we will change the format of Paperworld. That’s what makes our work so fascinating: we never remain stationary, but are always taking the process of change into account.

w w w.opi.net | OPI Magazine

Dinner PRESENTATION

Winners of the fifteenth annual

European Office Products Awards will be announced at a glittering industry dinner on

9 March 2016

at the Hotel Okura, Amsterdam

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Dacris | Dealer Spotlight

Marketing

the brand

Determined to push through the global recession, family-owned Romanian reseller Dacris has emerged bigger and better thanks to savvy business decisions and an emphasis on marketing

by Michelle Sturman michelle.sturman@opi.net

terms of age, Romanian office supplies reseller and distributor Dacris is a relative youngster; in terms of achievements, it’s a veteran. With 2015 sales of D20.5 million ($22.3 million) – a 15% increase compared to 2014 – the company has grown in the double digits each year for the past four years. Created in 1994 by Lidia, Dan and Claudiu Fati, Dacris opened its first store on a small street in the centre of Constanta on the coast of the Black Sea. Within just two years, Dacris had become the most important office supplies distributor in the south-east of the country. In 1997, it opened its first branch in the capital Bucharest and by 2009 Dacris had become the second largest national player in the country’s office products market, a position it continues to hold to this day. However, as CEO Dan Fati points out: “Dacris is first in terms of profitability.”

That said, the company was not immune to the turmoil caused by the most recent global recession and continues to grapple with the challenging economical and political environment that many businesses operating in Romania face.

Fragmented market As Fati explains, the Romanian office supplies landscape is hugely competitive, with market share split between hundreds of small players and only a handful of companies with sales of over D10 million. In 2009, as the reseller took the number two market position in the midst of the recession,

“We focused more on clients and initiated gross margin and even sales reductions with strategic customers in order to get through those tough times” it learned a valuable lesson – the importance of consolidation within its own business and investment in new channels. w w w.opi.net | OPI Magazine

Dacris | Dealer Spotlight According to Fati, this strategy had a major impact on other aspects of the business: “We focused more on clients and initiated gross margin and even sales reductions with strategic customers in order to get through those tough times. At the end of the crisis, we were still standing there with our clients, but their perception of us had changed from just having a commercial relationship to being a real trusted partner.” With over 6,000 regular B2B and B2C clients of all sizes and from all industry sectors, Dacris has had to continuously adapt and change. Over the past few years the company has diversified its product portfolio for the B2B segment and added categories including breakroom, jan/san, IT consumables and other services. These new segments have increased steadily and today represent 20% of total sales. 2015 alone saw a 20% sales increase over the previous year in these adjacent categories, with further 25% sales growth expected for 2016.

Migrating online The B2B sector constitutes Dacris’ main focus and represents 70% of total sales as a result of long-term partnership deals and 60 sales agents covering the entire territory of Romania. However, the company is now also turning its attention to further online capacity after making huge investments in its B2B and B2C e-commerce platforms. Fati says its B2B website www.dacris.net is being enhanced to help migrate its traditional B2B customers online to improve efficiency through e-commerce with real-time order processing. Both the B2B and B2C websites have a strong online communication strategy in place to promote and sell Dacris products and services. “We cover 98% of the total share of impressions in office supplies on Google [in Romania] thanks to our AdWords campaigns. Social media platforms also play an important role in keeping our relationship as open and transparent as possible with customers,” explains Fati. Today, Dacris covers most sales channels for office supplies and stationery through its hybrid dealer, importer and wholesaler model. The company owns 7,000 sq m (70,000 sq ft) covering office and warehouse space and one of the biggest printing houses in the country. A recent D700,000 investment in a new warehouse has increased capacity

Dacris fact box: Founded: 1994 HQ: Constanta, Romania CEO: Dan Fati Geographical coverage: Romania, Bulgaria, Moldova Business model: Family-owned dealer, importer and wholesaler Customers: B2B and B2C

by 1,000 sq m – taking the total available space to 4,000 sq m – and will support a new automated logistics platform that will considerably reduce the time it takes to prepare orders. Dacris has expanded at a fairly controlled pace over the past few years. The business now employs over 300 people in Constanta, Bucharest and in offices in 14 of the country’s main cities. In terms of growth outside Romania, the wholesale and import arm of the business entered Bulgaria in 2013 through a deal with mass market operator Metro Cash & Carry for the entire Pilot Pen range as well as school bags. Last year, Dacris extended the deal to Metro Moldova. Also in 2015, the company – which won the Reseller of the Year category at the 2012

“We cover 98% of the total share of impressions in office supplies on Google [in Romania], thanks to our AdWords campaigns” European Office Products Awards – pulled off a major coup when it signed an exclusive partnership with Staples, which has given it access to even more product categories.

Marketing magic

Dan Fati

Dacris is a keen advocate of dedicated seasonal campaigns to promote the manufacturer brands in its portfolio and targets them directly at specific business channels and events. Campaigns include back-to-school, Black Friday, Eco Days and the Winter Collection. “We invest in marketing programmes for our major brands and spend around D250,000 over the course of a year,” says Fati. Perhaps one of the most prominent examples of the reseller’s dedication to brand partner support is found in the Lolol concept store for stationery and gifts in Bucharest. “We test customer’s reactions to new products in the store. It’s also a place where clients that do business with us online can see the products offline,” explains Fati. As Dacris continues to expand across Eastern Europe, Fati says the biggest challenge is to show its clients that the company is more than just an OP supplier. “Customers need to acknowledge that we are truly a one-stop shop and able to supply everything from paper, jan/san and breakroom to printing services, MRO, technology services – and much more.” w w w.opi.net | OPI Magazine

Preview | EOPA 2016

EOPA countdown The great and the good of the European business supplies sector will convene once again to find out who’s scooped a EOPA trophy this year

Within

our constantly evolving industry, the European Office Products Awards (EOPA) have stood the challenging test of time and will this year reward outstanding achievements in our sector for the 15th time. On 9 March, the winners of the EOPA (see shortlist below), which was compiled following heated debates by an independent panel of industry executives, will be announced during a special awards evening.

Held for the third time at the Hotel Okura in Amsterdam as part of OPI’s well-established Partnership event, the EOPA dinner is now the only occasion in the OP calendar when senior executives from Europe’s leading vendors and resellers can meet in one room. OPI’s CEO Steve Hilleard says: “Apart from being an unrivalled networking opportunity, the event also recognises and rewards outstanding achievement by companies and individuals in the

business products industry and is a highlight in a sector undergoing rapid and unprecedented change.” For tickets for this unique evening of celebration and networking, email awards@opi.net or go to www.opi.net/ eopa2016. Please note that bookings for the EOPA are open to anyone, not just attendees of OPI Partnership which is now sold out.

New Product of the Year – Core Office Products

Dealer Group of the Year

Esselte – Leitz Style Range International Paper – Easy Open Solution Renz – Ring Wire Opener

Integra Office Solutions Marketing Gruppe West/Bürologistik NEMO Group Partner XXI Quantore

New Product of the Year – Powered Products Brother International Europe – DS-820W Portable Document Scanner with Wi-Fi Epson – EcoTank Printer Range Evolis – Badgy Fellowes – AutoMax 200C Shredder

New Product of the Year – FM Avery Zweckform – LIVING Range Henkel – UniBond Aero-360 Moisture Absorber OPN – muggi Rubbermaid Commercial Products – Slim Jim Step-on Container

Innovation of the Year Esselte – Leitz Complete Credit Card Power Bank 1350 Fellowes – AeraMax Air Purifier International Paper – Easy Open Solution Newell Rubbermaid – Dymo XTL Industrial Labelling Solution

Marketing Initiative Esselte – Leitz Icon Benelux Campaign Fellowes – Bankers Box by Fellowes: Organisation For Your Organisation Newell Rubbermaid – Paper Mate InkJoy Pilot Pen – Pilot FriXion Sponsors Best Solo Artist at the 2015 NME Awards tesa – 360 Degree tesa Powerstrips

OPI Magazine | February 2016

Wholesaler of the Year ALSO International Corwell JGBM Relef VOW

Reseller of the Year Amazon Büromarkt Böttcher Bureau Vallée Codex Coolblue Plaisio

Vendor of the Year Brother CEP Epson Fellowes grupo Portucel Soporcel

Professional of the Year No shortlist – winner to be announced on the night

Industry Achievement No shortlist – winner to be announced on the night

Category Analysis | Writing Instruments

All the

write

moves Despite pressure from electronic products, the traditional writing instruments sector is holding up well, with positive reports from the key suppliers

IT’S

been a good year for the writing instruments sector and Simon McLoughlin, Head of Traditional Office Products at UK wholesaler VOW, doesn’t see this stopping any time soon: “Our prognosis is for another positive year in the writing instruments market. We have expanded the space and the range for the catalogue section for 2016 in anticipation of growing sales across the category. “The brands in this market are increasingly active and are creating a vibrant and dynamic market to be operating in.”

Strong growth Figures from both sides of the Atlantic show strong growth this year. In the US, data from The NPD Group reveals sales up 6% in the first ten months of 2015 and a sector now worth over $2 billion annually. Leen Nsouli, the research firm’s Office Supplies Industry Analyst, delves deeper into the figures: “Writing is seeing growth across all retail channels. Year to date there’s been an increase of 17% in the take-up of speciality pens [see Fig 1, page 45],

OPI Magazine | February 2016

such as stylus pens that are an attractive option for consumers looking to blend traditional writing with technology. “There also seems to be a shift in the purchasing of traditional pens at the moment, with their sales losing unit share to encased and mechanical pencils. This may be due to the increased mention of encased pencils on K-6 [primary school] lists.” Todd Kehley, Director of Trade Marketing at BIC Consumer Products in the US, agrees that sales in 2015 were strong, with a particularly successful back-to-school (BTS) shopping season: “We believe this strength was due to an improving economic environment and greater consumer confidence after a few years of reserved spending.” On the other side of the pond data from GfK in the UK tells an even better story, with sales rising an impressive 12.1% in this sector. Leanne Whittaker, GfK’s Senior Account Manager, says: “Writing has been very positive this year and

was a key area of strength for BTS in 2015. Markers have been a key growth sub-sector for the past 12-18 months, but the hero products have been colouring pens and pencils, fuelled by the trend for adult colouring books [see Fig 2, page 45].” Whittaker is not the only one to mention the craze for grown-ups breaking out the colouring tools, which has taken the publishing world by storm over the past year. Ken Newman, Director of Marketing at Zebra Pen in the US, adds: “Adult colouring is making a big splash, which is why porous pens, felt tip

Writing Instruments | Category Analysis

56.3

Star product

Colouring Pencils Losing product Crayons 23.7 14.6 6.8

Colouring mania

10.3 3.2

-5

Ball point Colour felt Colouring Correction pens pens pencils prod

(%)

The trend apparently began in France and is now spreading around the globe, with a huge community growing up around the books. Specialist groups have been set up on Facebook where fans meet to discuss different types of pens and exchange colouring tips. A common reason given for its big attraction is the freedom it provides from the modern world’s digital distractions. Devotees admit that it’s easy to get addicted to the different types

Crayons

you can use colouring pens to take a creative break.” Industry experts believe that adult colouring titles are here to stay. They made popular gifts over the Christmas period and the market is forecast to double over the next six months, with demand showing no signs of waning. Wendy Vickery, Marketing Manager at Pentel, adds: “It’s now a global force that looks set to stay

Fig 1: Writing instruments sales performance US (January-October 2015) 10 3

-30

5 Flat

Flat 17

Losing product Variety Packs

Star product Speciality Pens

Traditional Speciality Pen sub-category

(%)

Variety Packs

Pens

Pencils

Fine Writing

Markers

of pens and pencils available and with specialist sets costing as much as £250 ($370), it can become an expensive hobby. This is excellent news for those selling into this sector. Horst Brinkmann, Board of Management (Marketing/R&D/Sales) at Stabilo in Germany, also mentions this phenomenon which he refers to as adult ‘art therapy’. Stabilo targets its Point 88 range at this market and is seeing double-digit sales growth: “Colouring is relaxing and relieves stress. In a digital world where everything seems to get ever faster,

Highlighters Correction

Refills

Source: The NPD Group

Source: GfK

Fig 2: Writing instruments sales performance UK (November 2014-October 2015)

markets and coloured pencils are showing strong growth trends.” Amazon UK’s Top 10 list regularly contains several colouring books for adults and has turned a few astonished illustrators into some of Britain’s best-selling authors. Scottish illustrator Johanna Basford has sold around two million copies of her colouring books. She attributes their success to them being a way to switch off from screens and relieve stress, calling it a ‘digital detox’.

Fountain pens

6.6

Graphite pencil

7.9

Highlighters

19.4 4.0

Markers

4.4

Mechanical Roller balls Writing felt pencils pens

smearing and smudging. For this reason we’ve introduced rapid-dry technology with ink that dries in less than a second, appealing to the gel pen aficionado and the left-hander.” Brinkmann also highlights the surge in demand for erasable pens: “It’s been building for several years and continues to grow. The ability to easily correct your own mistakes appeals to consumers.” Vickery agrees, though she points out the pitfalls: “There’s no doubt they are hugely popular now. Unfortunately, some users have been caught out, signing documents or cheques with erasable ink and then unwittingly leaving them exposed to direct sunlight where they can fade. “What we’re also seeing as things evolve is niche markets opening up and established products finding new applications or a resurgence in interest – look no further than the fountain pen market, which is experiencing a renaissance few would have predicted several years ago.”

Think outside the box for the foreseeable future. This presents a fantastic opportunity for manufacturers of coloured pencils, pens and markers. Pentel’s most popular product that’s ideal for this new activity is the Studio Set of 35 fibre-tipped colour pens, which are more durable than children’s felt tips.” Zebra Pen’s Newman has identified another key trend: “Gel pens seem to appeal right now with sales growing. Our feeling is that people like the smooth writing performance, with the only real speed bump being their slow drying time as that can cause

Per Ledermann, CEO at German writing instruments manufacturer edding, thinks we should look at ink beyond a product that’s simply used to apply colour to paper and believes that we are currently just scratching the surface of its potential uses. Colour-changing, thermochromic ink, for example, could be used in a variety of ways – from warning people of high temperatures, to various applications in artistic or fashion design. A further trend in the category is in products designed to help children w w w.opi.net | OPI Magazine

Writing Instruments | Category Analysis learn how to write, says Brinkmann: “We created our Easy Start pens that are ergonomically designed for children’s hands. We also launched the SMARTjunior tablet pen which transcends the boundaries of the analogue and digital worlds and focuses on developing a child’s graphomotor skills – the combination of cognitive, perceptual and fine motor techniques that are crucial when learning to write. “Used in combination with a specially-developed educational game called Monster Zoo, a preschooler can dive into a colourful world which aims to provide a solid foundation for learning to write later on.” BIC’s Kehley agrees that this is another key driver: “Children’s education in general is a powerful force in this category. While BTS is clearly a seasonal factor, consumers are increasingly aware of the need for students’ writing skills to be developed all year round since writing plays such an important role in a child’s cognitive development and educational success. “Writing by hand continues to be necessary in the classroom and has numerous benefits as it activates different areas of the brain compared to typing. As a result, consumers are actively seeking out products that are designed to help make writing fun for their offspring.”

Pen power The doom-mongers’ prediction of the demise of the mighty pen seems to have been well wide of the mark. Despite the surge in tablet, smartphone and laptop use, it appears that we still love the practicality and simplicity of a writing instrument we can hold in our hand. And Mike Ayckbourn, EMEA Sales Director at Newell Rubbermaid,

remains optimistic: “Writing products will continue to be desired – either at the low end with the everyday needs we all have or, at the high end, with gift and reward luxury pens. Of course I use smartphones, tablets and laptops, but when I attend a meeting I still use paper and pen to take notes. Equally, in schools the use of technology is fantastic, but pens are still used in class and for completing homework.” Kehley sees it as horses for courses: “Writing is certainly transforming. Technology provides people with more writing tools than ever before. However, they aren’t taking a binary approach to writing on paper or tech devices, but are

then they could certainly put pressure on the traditional writing instruments market. But for now there’s still no device better suited to catching the creative momentum or sketching ideas as they come to mind than a marker or pen – ink is far from dead.” Pentel’s Vickery sums up the power of the pen: “Despite the rise of technology the pen is still here and it’s not hard to fathom why. Pens still function in a power cut or when the wifi drops out. What’s the worst thing that can happen with a pen? The ink runs out. It’s easily remedied: simply refill it or replace it. Quick, easy and convenient.”

A bright future The future of the sector looks secure. The traditional side is here to stay and can happily co-exist in harmony with new technological developments. Writing instruments are more than tools capable of leaving a mark on paper – consumers also view them as a source of

“Writing products will continue to be desired – either at the low end with the everyday needs we all have or, at the high end, with gift and reward luxury pens” using a combination of both, based on the writing occasion. “People are also still writing by hand because they enjoy it and recognise that it has many emotional and cognitive benefits. The data shows that both dollar and volume sales for writing instruments were up in 2015 so usage is increasing – great news for the category.” Ledermann meanwhile, views technology as a potential, but as yet unrealised, threat: “Smart devices are already deeply rooted within society and devices such as Apple’s iPad Pro with its new pencil or the upgraded pen on Microsoft Surface Pro 4 are designed to improve the writing experience on tablets. If people see them as handy products,

self-expression and creativity, with many enthusiastic about selecting the writing instrument that best fits their personality and lifestyle. And as with many office product categories, personalisation is key. As VOW’s McLoughlin concludes: “The writing instrument market has been resilient to technological developments in the recent past and the personal connection consumers now have with their pen means it is well placed to continue to thrive well into the future. “Technology may be reducing the amount of day-to-day activity that requires a writing instrument, but new developments in collaborative working practices are creating brand new environments where the colour, immediacy and flexibility of pens means they will continue to succeed.” w w w.opi.net | OPI Magazine

Category Analysis | Security & Data Protection

Beating the cyber crooks As online crime increases, the security and data protection sector is fighting back, but who is winning the battle?

seems as though hardly a day passes without yet another story in the news about cybercrime and data hacking. The online world can feel like a dangerous place stalked by criminals intent on stealing your money, your identity or both. But are individuals and companies doing enough to protect themselves or their customers and what are the most up-to-date tools available to help in the fight against cyber crooks? OPI spoke to some of the experts in the security and data protection sector to get the latest views.

An increasing threat There’s no doubt that online crime is on the increase. In the UK the National Cybercrime Unit, part of the National Crime Agency, published some alarming statistics: over the past year 11,000 people reported that they had fallen victim to an

OPI Magazine | February 2016

online security threat, with many losing important files or having their credit card details stolen as a result. Worryingly, 37% of people don’t install or update their security software and even 13% of those that do sometimes turn it off, leaving them wide open to attack. This increasing threat is helping to boost sales for those offering security solutions. As Clive Humm, Product Manager at Snopake, manufacturer

level we have all become more aware of the need to destroy confidential documents and data. The media publicity devoted to high-profile hacking serves as a regular reminder that our personal data is precious.” Recent figures from GfK in the UK show how this is translating into business, with sales of security software suites up a staggering 70.8% by value over the past year. Sales of shredders are also up by a more modest 5.4%. Nathan Dawes, Hardware Product Manager at UK wholesaler VOW, comments: “People are definitely becoming more security conscious. As more staff work remotely we’ve seen an increase in privacy filter sales and established brands such as Fellowes are launching their own privacy filter ranges. “On dictation products we have also seen key customers such as the NHS switching to products that offer a password-protection capability in case they fall into the wrong hands.”

Prying eyes It’s annoying when you realise the person next to you on the train has been reading your text messages

“The media publicity devoted to high-profile hacking serves as a regular reminder that our personal data is precious” of the Swordfish brand of shredders, points out, it’s the fear factor that’s fuelling demand: “We are all fearful that our bank accounts could be compromised. And at a corporate

or following along on your Kindle. But when it comes to confidential information, the prying eyes of a nosy neighbour can be more than just annoying – they can be a real threat.

Security & Data Protection | Category Analysis The intentional or unintentional viewing of someone else’s smartphone, tablet or laptop is increasingly likely with today’s mobile technology. The bigger, brighter, sharper screens designed to making it easier for you to see them also make it easier for others to pry. All of this represents a real selling opportunity for resellers, both to the B2C as well as the B2C customer. Doug Nash, CEO of Mobilegear – a niche OP website that specifically targets the mobile workforce – says: “If they can see it, they can steal it. We strongly recommend taking a few precautionary steps to protect your personal and confidential business. “Firstly, turn down the brightness on any screen. This makes it harder for others to see. Keep devices face down and silent when not in use – pop-up emails, text messages and reminders not only alert you, but everyone around you that something important might have been sent to your device. “Secondly, always use privacy screens on all laptops, tablets or smartphones. Thirdly, always beware of your surroundings and adjust your work or search accordingly. Find a location where the screen won’t be exposed to others.” The increase in mobile working in public spaces also increases the risk of having important items packed full of confidential data stolen. Nash explains: “Locking up your items is critical. Laptop locks, or even backpack locks help deter thieves from stealing your property. It only takes a few extra minutes when setting up, but it’s worth it to ensure someone doesn’t walk off with your device.” He recommends two further security measures: “Backing up your files and carrying surge protection are two ways to prevent your digital information from getting lost. We recommend that portable hard drives become a standard part of anyone’s working lifestyle. If not a physical hard drive, then make sure you have a back-up storage service. “Plugging devices straight into any old wall socket is a recipe for disaster in terms of keeping them safe from electrical surges, so use a

Workplace crime It’s not just cybercrime that’s a problem. Conventional theft both at and from the workplace is a huge problem. A recent study by Avery found that over 60% of UK workers had things disappear from their desks while at work, with items ranging from stationery to phone chargers, documents and calculators going missing. And light-fingered colleagues weren’t the only reason for missing items. Lost property is a big issue too, with almost half of survey respondents admitting to losing or leaving behind something important and never getting it back. Fiona Mills, Director of Marketing & E-Commerce at Avery UK/CCL Industries, says: “14% of the businesses we spoke to said important equipment or tools of the trade go missing several times a year and a quarter reported gadgets such as laptops, mobile phones and tablets going missing or stolen too. Among office workers, almost a third had experienced food theft in the workplace, with items being taken from the fridge, their desks, lunchboxes or the company kitchen. Proper labelling of personal possessions and company property can act as a deterrent when it comes to theft.” surge protector. Most also allow for multiple devices to be plugged in so you can become very popular when there are only a few power points and lots of people who want to use them.”

Counterfeits and fraud Dick van Baarlen, Managing Director at security firm Safescan in the Netherlands, operates in two niche security markets – money handling systems designed to detect counterfeit coins and notes, and time attendance systems that allow firms to have real-time insight into staff presence (or lack thereof). He says: “Both product groups are growing very well within office products distribution. The fraud associated with counterfeit eurozone banknotes has increased quite dramatically and the quality of the fakes is much improved. This has stimulated the demand for professional counterfeit detection. “Additionally, the European Central Bank and Bank of England will soon be changing their banknotes to improve durability and add new security features. This will mean increased demand for new money

counters and detectors that can deal with them. “In our time attendance division we’ve noticed increased sales as businesses seek to avoid working-hours fraud by logging the presence of their staff. Our latest systems include biometric features. Cloud software will be incorporated soon, enabling firms to monitor the presence and working time of their staff from any location. Remote sites can also easily be monitored via mobile apps. “I think the OP industry should put much more focus on niche security products and solutions as they still offer growth opportunities.” w w w.opi.net | OPI Magazine

Security & Data Protection | Category Analysis The office shredder is still a vital piece of workplace equipment when it comes to security. It constitutes big business too, with data from The NPD Group showing sales in the US worth over $181 million in the first ten months of 2015 alone. However, Carol Liu, Assistant General Manager at Chinese shredder brand Bonsaii (part of Bonsen Electronic), comments that although its best-performing market currently is the US, she sees big opportunities elsewhere: “We are focusing on developing countries like China and India where we believe there will be huge demand as their economies grow and awareness of security issues makes protection more of a priority.”

Risk assessment But as Mark Harper, Head of Office Technology Sales at HSM UK & Ireland, explains, even in the more mature markets some firms are still putting themselves at risk: “Electronic data security is a very high-profile topic and organisations, particularly those handling large

Consumers misusing their shredders present a whole new set of challenges, according to Snopake’s Humm: “Overloading is commonplace and will naturally shorten a shredder’s working life. Also, shredding junk mail while still in a polythene wrapper can wreck a machine as the soft plastic jams up the cutters. “We often have machines returned because they are supposedly faulty only to discover that they have been badly mistreated. Finding a book of cheque-stubs jamming a machine is not uncommon, but we were surprised to receive a machine that had been jammed by a well-mangled £1 coin, although it had made a valiant attempt to shred it [see picture below].”

“Shredders are not just machines that cut up paper, but properly deployed are the security measure that completes the data security circle” amounts of customer or sensitive personal data, are well aware of the dangers here and will invest heavily in measures to prevent loss. “But in this environment it’s easy to overlook the fact that their security can easily be breached by paper records being carelessly stored, discarded or stolen. Shredders are not just machines that cut up paper, but properly deployed are the security measure that completes the data security circle.” He adds: “Organisations must deploy a comprehensive physical data security strategy that includes training their staff and making a cultural shift to understanding the importance of timely paper document destruction when it’s no longer required. That way sensitive documents cannot be omitted from the destruction process by mistake.”

Consumers’ failure to follow instructions is also a problem, particularly if they use the wrong type of shredder oil. “We always say that on no account should aerosol lubricants be used as their contents and propellant are highly flammable,” says Humm. “Yet we receive complaints that a shredder

‘just burst into flames’ and on investigation we find that an aerosol lubricant had been used.”

Shredding trends Harper sees a number of strong trends in the shredder market, with firms for example moving away from a centralised shredding service to destroying documents locally in individual departments. This reduces the risk of potential security breaches as paper is not left lying around in sacks or secure stores for shredding later. For high-volume applications the use of industrial conveyor-fed machines is on the rise, with some models compacting the shred into bales that can be sold for recycling. There’s also a general trend for shredders with larger capacity and with higher levels of security. Harper explains: “We are seeing more sales at the higher P-5 and P-6 security levels, but for most businesses P-4 provides a good compromise between security and performance. “A typical P-4 shredder will cut an A4 sheet into around 400 pieces, with 638,400 possible different ways of reconstructing it. A shredder bin with five reams of A4 shredded at this level contains one million similarly sized and shaped pieces – that’s more security than most organisations could ever need.” It appears that although data crime is on the increase and a very real threat to both firms and individuals, there are plenty of practical measures we can all put in place to help beat the cyber – and real – crook. w w w.opi.net | OPI Magazine