European Annual Review 2015 by OPI

EUROPEAN

ANNUAL REVIEW 2015

p4 Wholesaling issues in Germany p8 Soennecken goes direct

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

Features & Production Editor Heike Dieckmann

Editor’s comment

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

News Editor Michelle Sturman +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 Manager India Pride +44 (0)20 7841 2959 india.pride@opi.net

Events Events Manager Lisa Haywood +44 (0)20 7841 2945 lisa.haywood@opi.net

Production and Finance Designer Charlotte Gerhardt +44 (0)20 7841 2943 charlotte.gerhardt@opi.net

Production Assistant Jack Francis +44 (0)20 7841 2950 jack.francis@opi.net

Accountant Dotun Olaniyan +44 (0)20 7841 2956 dotun.olaniyan@opi.net

Publishers CEO Steve Hilleard +44 (0)20 7841 2940 steve.hilleard@opi.net

Director Janet Bell

All change, please! Welcome to our OPI European Annual Review for 2015, a year which looks like being another interesting one for the European business supplies industry. The US-owned globals are going through a period of major change in Europe while France-based giant Lyreco is beginning the year with OPI has assisted Messe a new CEO in the form of Frankfurt in organising a high-level Hervé Milcent. speaker and panel line-up Changes are taking place within the independent channel too, not least at leading German dealer group Soennecken which has changed its bylaws to enable it to sell direct to end users. Turn to pages 8-9 for an interview with the cooperative’s Chairman Dr Benedikt Erdmann who explains the rationale for this major development. For those of you reading this publication at Paperworld in Frankfurt, I hope you have a productive show. OPI has assisted Messe Frankfurt in organising a high-level speaker and panel line-up for the Paperworld Plaza Academy on Monday 2 February, so make sure you are in Hall 3.1 for that.

+44 (0)20 7841 2941 janet.bell@opi.net

Andy Braithwaite, Editor

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Contents CBP0009242909111341

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.

Wholesaling issues..........4

ADVEO World Review..22

The new Soennecken......8

Reseller focus Italy......24

Paperworld in-depth......10

Product showcase...... 26

Year in review.................15

5 minutes with..............29

France market update...20

Final word.....................30

Office Products International Ltd (OPI), 2nd Floor, 112 Clerkenwell Road, London, EC1M 5SA Tel: +44 (0)20 7841 2950 Fax: +44 (0)20 7841 2951

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Interview | Richard Scharmann

Building for the future PBS Holding CEO Richard Scharmann discusses the wholesaling situation in Germany

PBS

Holding’s German subsidiary PBS Deutschland acquired leading regional wholesaler Georg Kugelmann in December 2013. As Group CEO Richard Scharmann explains, the integration process was not all plain sailing. OPI: The Kugelmann acquisition in Germany attracted a lot of interest at the time. How did that integration process go? Richard Scharmann: In the past ten years we’ve never had an integration in Germany that went really smoothly, and Kugelmann was no exception. There is always a level of customer attrition that you expect with these kinds of acquisitions – we know to expect about a 20% loss because not every customer likes the new situation. However, in this case we lost nearly 40% because about two-thirds of the Kugelmann field reps were dragged away to competitors. Actually, I think we did a pretty good job in securing more than 60% of sales with a much reduced sales force; and when you look at the figures behind this, they are very close to our plans so it’s not a significant impact, but it was a situation that required quite a lot of additional work. OPI: Where did these reps go? RS: Interestingly, we saw some field reps in their 30s and 40s

OPI Magazine | European Annual Review 2015

joining small wholesalers with annual sales of, say, H4 million ($4.7 million). I don’t really believe that is the kind of structure they would be able to stay in for the next ten years or so – I think they were simply frightened of our ‘industrial’ model; we’re a

“We’ve never had an integration in Germany that went really smoothly, and Kugelmann was no exception” very large, professional company and we do things differently to perhaps what the reps were used to in organisations like Kugelmann where there are very traditional relationships. So I think they were intimidated by our professional approach in terms of figures, structures, organisation, tools, etc, and some of them were simply not able to work in this environment. And to be honest, I don’t think all of them would have been the right people for us to deal with our systems and to provide the services to our customers. OPI: You didn’t keep the Kugelmann name after the integration? RS: No, we didn’t. That was absorbed into PBS Deutschland. We also have the Alka brand, but PBS and Alka are under one roof, so we have one management organisation in Germany and we have two, let’s say, marketing concepts: Alka, which covers the B2B side including the Büroprofi franchise network, and PBS Deutschland which covers all the traditional stationery dealers; these dealers are more focused on retail and the back-to school season and seasonal products so it’s full-range wholesaling in a traditional way.

PBS Holding | Interview OPI: How do you expect the German wholesaling channel to continue to evolve? RS: I think it will be interesting over the next 2-3 years because many smaller wholesalers do have

RS: A combination of both probably. And we will just keep our eyes and ears open for opportunities that could be a good fit for us. But it will take time, so we are really looking at the next 3-5 years.

“Many smaller wholesalers do have real issues with their profitability” real issues with their profitability and they have no room to make investments. As we saw with Kugelmann, the only way to improve profitability is to find synergies by consolidating structures; when you stay within the old structures and keep a large number of sales people with very small sales per capita – and even add more reps into this model – you will never have a profitable business. So I think in the next 2-3 years we will see them even more troubled than they were before. OPI: How many of these regional wholesalers still exist in the market? RS: Well, it’s difficult to say. You could say 10-15 smaller ones, but if you just talk about those that are a bit more regional in Germany, then just a handful. It’s quite interesting in Germany right now because we see consolidation going on, and I think you can really talk about the ‘big five’ that are relevant players with a future and that are really focusing on their concepts and differentiation. So apart from us, there’s ADVEO, soft-carrier, Iden and Soennecken, ranging from about H60-H70 million to H150 million; we’re all doing a very good job, are profitable and all have our specific concepts. In my opinion, the more the market moves in this direction, the more interesting it gets because the customers can really choose between these different concepts. So it’s not just about where the cheapest product is; it’s about what you want to achieve in the market and which set-up could be the best for you as a dealer. OPI: So what do you think will happen to these smaller players? They’ll go out of business or be bought?

OPI: What about your relationship with cooperative Soennecken? Are you still partners?

RS: We still have a very successful partnership. With Soennecken’s LogServe facility focusing on the B2B side and mainly office products, as a broadline wholesaler we supply them with back-to-school items, seasonal products, social stationery, etc. We are growing in the double digits with Soennecken members and it’s exactly on plan. In addition, we have quite a close relationship when it comes to data sharing and things like that, where two big players in Germany can share their resources in those areas. OPI: No sense that you’re helping out a competitor or a potential competitor? You mentioned them as one of the big five so they’re obviously competing with you. RS: That’s true, but Soennecken is still very focused on its cooperative model and it’s very hard to drag dealers away from Soennecken to, say, Alka and vice versa, so we don’t have any fears about that. It’s still a win/win situation and as we’re not involved in the direct channel there is no issue there either with Soennecken now getting involved in that area following its recent vote [see page 8 and also the Hot Topic in OPI February 2015].

OPI: How important is e-commerce as part of the overall mix if you look at the stationery and office channels in Germany? RS: It’s very important on the B2B side and much more on the B2C side, of course, when it comes to back-to-school and other seasons. But there is not yet a system which is very competitive. You can buy all products from Amazon if you like to do so and if you have the time to spend hours picking the different products from the different suppliers you can find on Amazon and Amazon Marketplace. We are introducing an online solution for Skribo within the next 3-4 months in Germany and in Austria, so we have an end consumer B2C web shop which is the first one there with regards to that specific product portfolio. OPI: How will that work – store pick-up, direct delivery, a choice? RS: It will be a mixed solution. The important thing is we will have a very sophisticated service approach to this so that we can ensure a consistent level of service. So for example, regardless if customers decide to have items shipped to their home address or choose to collect the order from their nearest store, we will prepare orders within our logistics system and either deliver to the customer address or ship to the store. It’s not about dealers picking products from the shelves and making the sale within their shop; it has to be much more advanced than that. OPI: So who makes the sale, PBS or the dealer? RS: This is PBS, but we have a system in place that will give certain parts of the profits back to the dealers.

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Feature | Soennecken

‘Yes’ to e r u t u f e h t

Adapting its model is vital to secure the future of the cooperative, says Soennecken Chairman

LAST

November saw a resounding 84% of Soennecken’s voting members give their consensus to the cooperative’s proposal to operate its own business to commercial and private end users – effectively putting it into direct competition with its members. The shakeout of the resulting new bylaws is only just beginning to unravel. OPI spoke to Soennecken Chairman Dr Benedikt Erdmann about the reasons for this unprecedented move, and the impact and potential repercussions it might have for dealer members as well as the cooperative’s future itself. OPI: Going directly to end consumers – though just a select segment – is not entirely new for Soennecken. I assume this hasn’t quite worked out as expected over the past few years, however, and that your members’ discontent with this move became a stumbling block for progress? Dr Benedikt Erdmann: Your assumption is correct; we weren’t as free to act as we would have liked. And of course, it was particularly the larger non-store B2B members that used the opportunity to block our direct sales to key accounts. As we have done in the past, however, we will continue to grant our members wide-ranging rights with regard to these large customers and we will keep our promises. For now, we are very happy with where we are and have been able to acquire a number of very important customers.

OPI Magazine | European Annual Review 2015

Dr Benedikt Erdmann

“It doesn’t matter to us whether it’s the members or Soennecken itself that get the business”

OPI: So, going forward, what are your short and medium-term plans for the direct business? BE: Like I said, we want to further grow our key account business, and recent months have shown that our market proximity is giving us valuable knowledge in this area. We have considerable experience in the tendering business and while we wish to maximise that experience, we are already passing that know-how onto our members who can then use it successfully to generate new sales. Over the past few months, they’ve already been able to win some major contracts with our support. Together, we are increasing our market share. What’s important to understand is that it doesn’t matter to us whether it’s the members or Soennecken itself that get the business. What’s vital is that we increase the sales of the cooperative as a whole. OPI: Apart from the key account business, I believe you’ve also mentioned a more comprehensive direct online offering to your members? Will that be B2B or B2C-orientated? BE: Our focus is the B2B market. We see interesting growth opportunities here, now and in the future. I have a more critical view of the B2C online trade and see only limited opportunities here to build a profitable business. That said, the B2B and B2C markets are increasingly intertwined and a strict separation of the two is already impossible as consumer behaviour is changing all the time.

Soennecken | Feature OPI: How are you going to approach that part of the new direct business? BE: We are in the process of tasking a specialist firm to identify suitable acquisition targets that would be of interest to us and that we could finance. That said, and importantly, this lookout for acquisitions applies both to retail and the online trade. OPI: Not all members voted ‘yes’ at the meeting in November and many didn’t cast a vote at all. What were their objections against the change of Soennecken’s bylaws? BE: During the many discussions we’ve had with members over the past few months, there was a consensus that we needed to react to the massive changes in the market. Essentially, it was just the ‘how’ that needed to be discussed and that, at times, was hugely controversial. Different people had different ideas of what it means to be a stakeholder in a cooperative, and we had to find a solution that everyone could agree on. We were able to do that with the predominant share of members. The few ‘no’ votes were largely determined by individual interests. OPI: So where exactly is the real conflict, in your opinion? BE: Given that we are interested in a broader direct online business, the greatest potential for conflict lies in the fact that practically every Soennecken member has customers that are open to the offers of online suppliers. And of course, it cannot be ruled out that this could occasionally result in competition between a Soennecken company and a member. This competition between our members and e-tailers already exists, however. So, from an objective point of view, none of this is really new. The difference is that competition from an ‘outsider’ is accepted more readily than competition from within one’s own cooperative. OPI: Definitely. Is the ownership structure of Soennecken changing in any way? BE: I want to be very clear on this: the change in bylaws has not changed our overall remit at all. Neither has our ownership structure: Soennecken is still owned by its members. We are and we remain a cooperative and our purpose is to promote and support our members. We have been doing this very successfully for many years and will continue to do so.

“Our aim is to interpret the concept of a cooperative in a modern way”

Our aim is to interpret the concept of a cooperative in a modern way. All I can say is that new challenges require new forms of support and collaboration. OPI: What are Soennecken’s specific priorities for 2015? BE: We have two focus areas: doing the things we are already doing, but better than before, and developing new areas. Specifically, that means we will adapt our member support services to the changes in the market. One of the challenges is growing digitisation. Here, for example, we are working intensively with our retailers on fully integrating their online and offline offerings. Successfully marrying digitisation with ‘tradition’ also applies to the non-store trade where the requirements are often significantly more complex, particularly in the area of differentiated customer processing. Field sales, invitations to tender and online businesses no longer work in isolation or as individual strategies; the task is to serve all channels with greater competence but without fragmentation. The whole area of ‘office equipment’ is new for us and, again, the ongoing digitisation of the workplace is changing the requirements placed on the specialist trade, ie our dealer members. What products will be in demand in the future? Even more importantly, what services are needed? We want to find the answers to these questions and have therefore joined the “Office 21” research project being run by the Fraunhofer Institute for Workplace Economics and Organisation. For an in-depth analysis of Soennecken’s new status and industry reaction, look out for the Hot Topic in the February issue of OPI.

Dr Benedikt Erdmann and the Soennecken board at the extraordinary general meeting on 25 November 2014

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Event Preview | Paperworld 2015

Different

strokes

Paperworld Frankfurt 2015 is shaping up to what could be a very interesting show with the addition of a number of new innovations such as the Paperworld Plaza and the Get Started hall

THE

2015 motto for Paperworld is ‘Always different’ and for its upcoming show (31 January to 3 February), organiser Messe Frankfurt has pulled out all the stops in an attempt to keep exhibitors and visitors satisfied. This is essential, as the show has suffered in recent times with the exit of a number of high-profile exhibitors along with declining visitor numbers. Now Messe Frankfurt has instigated a number of initiatives to entice more people back to the show (although visitor numbers still topped 40,000 last year). The first initiative is Paperworld Plaza – an agreement between Messe Frankfurt and two German trade associations Altenaer Kreis and PBS Industrieverband – that will see the associations’ members exhibit in a separate hall at Paperworld every two years. Companies that have already signed up to exhibit at the Plaza in Hall 3.1 include Durable, edding, Faber-Castell, tesa, Trodat and Staedtler. The Paperworld lecture area will also now be hosted in Hall 3.1 under the moniker Paperworld Plaza Academy, and this will offer an extensive programme of lectures including topics such as marketing, trends, trade and sales (and comprise a one-day conference organised jointly with OPI, see right). Moving from Hall 3.1 to make way for the Plaza, the Remanexpo has moved into the newly renovated Hall 6.0. Messe Frankfurt says improvements to the insulation and redesign of the building exterior have improved the climate inside the hall, making it a more suitable area for manufacturers to display their products. So far, vendors that have signed up for the Remanexpo include Armor, Static Control, Katun and OCP. A second initiative new to Paperworld 2015 – the ‘Get Started’ hall – will be dedicated to

OPI Magazine | European Annual Review 2015

Paperworld events • Trends 2015/16 Hall 6.1 C90 • Plaza Academy Hall 3.1 C60 • Mr Books & Mrs Paper Hall 5.1 B60 and B68 • Let’s Wrap Hall 4.0 C90 • Get Started Hall 5.1 B20

international start-ups wanting to showcase their company and products. The Get Started hall is aimed at companies from outside Germany and those that have never exhibited at an international trade fair. To encourage businesses to sign up, a fully-furnished and equipped stand will be offered at “favourable terms and conditions”, says Messe Frankfurt. Hall 5.1 is also intended to be a transitional stage for companies that can no longer take part in the area in Hall 6.1, sponsored by the Federal Ministry of Economics and Energy (BMWi), where participation of up-and-coming German firms is limited to two years. “The large number of registrations received to date confirms that we have paved the right way for a future-oriented platform for the sector,” says Cordelia von Gymnich, VP of Consumer Goods & Entertainment at Messe Frankfurt. Look out for an in-depth interview on Paperworld 2015 with Cordelia von Gymnich on page 12.

OPI@Paperworld OPI has assisted Messe Frankfurt in coordinating a high-level one-day conference as part of the Paperworld Plaza Academy. Taking place on Monday 2 February, a series of presentations and panels is dedicated to helping OP executives manage a rapidly changing industry. The keynote address by Zukunftsinstitut Director Jeanette Huber will focus on future trends including the up-and-coming workforce, the benefits and challenges of working digitally and what an energising workplace looks and feels like. Other highlights include Office Depot’s Olaf De Boer who will discuss customer-centric category management and procurement, and an illuminating panel discussion on responding to change in the business supplies industry with Euroffice CEO Simon Drakeford and Vasanta Group CEO Robert Baldrey. Closing keynote speaker, ADVEO CEO Millan Alvarez-Miranda, will provide his perspective on the OP distribution landscape, highlighting the key challenges and opportunities in a State of the Industry report.

Paperworld 2015 | Event Preview

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Interview | Paperworld

Keeping pace… FACED

with exhibitor fatigue, declining visitor numbers and a new show contender, Paperworld Frankfurt has introduced a number of initiatives and innovations for its 2015 show to ensure it remains on top of its game. OPI caught up with Messe Frankfurt VP of Consumer Goods & Entertainment Cordelia von Gymnich to find out why Paperworld 2015 is still the premier show for the paper, office supplies and stationery industry. OPI: What makes Paperworld a must-attend event? Cordelia von Gymnich: Paperworld has become a must-attend event because of its unique mix. It is the only trade fair for the paper, office supplies and stationery industry where manufacturers from 58 different countries exhibit their products at a single location. Moreover, it brings together both small start-up companies and successful brand manufacturers of many years’ standing. The complementary programme also makes an important contribution: visitors can see the current trends, specialist knowledge is disseminated in lectures, and

Messe Frankfurt’s Cordelia von Gymnich talks to OPI about Paperworld 2015 and with the speakers themselves. Messe Frankfurt is also inviting everyone to the Plaza Academy for the daily get-together after 5pm. The entire international sector meets up in Frankfurt to look at new products and to make contact with other business professionals. OPI: What are your expectations of the 2015 event? CvG: I expect Paperworld 2015 to be just as colourful, lively and inspirational as ever. We are reckoning on similar numbers of exhibitors and visitors as last year, and I am sure that the many additional events will be greeted with great enthusiasm on the part of the visitors and will launch them into the new year of business with a feeling of real added value. OPI: What’s new for 2015? CvG: One of the new things in 2015 is the Paperworld Plaza in Hall 3.1. It is based on a cooperative venture between the two German manufacturer associations Altenaer Kreis and PBS Industrieverband

“Every day in the Plaza Academy, experts in their field will be giving talks on current issues in the sector” the special shows provide ideas for supplementary ranges of products. There will also be sufficient time after every specialist lecture in the Plaza Academy, for example, to discuss the issues with colleagues

(now merged as the Verband der PBS-Markenindustrie – Office Brands Industry Association). We are delighted that the active member companies have reacted so positively and see the Paperworld

OPI Magazine | European Annual Review 2015

Plaza as a valuable opportunity to present themselves, their products and services to the national and international wholesale and retail trade. The excellent number of registrations confirms to us that we are on the right track towards a future-proof international platform for the sector. OPI: Could you explain more about the Paperworld Plaza concept, the thinking behind it and why it was created? CvG: At Paperworld we need to meet the needs of the industry – as well, of course, as those of the wholesale and retail trade – with flexibility and that brings with it new ways of approaching things. There are adjustments that have to be made at key points. As a result, we have sought to engage in cooperative ventures with the professional associations involved, and a number of working groups were created. You will see the result at Paperworld 2015 – the Paperworld Plaza. The member companies that belong to the association determined the structure of this exclusive exhibition space. So alongside traditional office supplies and writing equipment, you will also find stationery products and accessories for a home office from paper, office supplies and stationery companies from German and international vendors. Additionally, every day in the Plaza Academy – located in the same hall – experts in their field will be giving talks on current issues in the sector while, at the same time, the Plaza Lounge offers a place to network.

Paperworld | Interview OPI: What is happening in terms of events that is noteworthy? CvG: Paperworld brings together the world’s largest range of products and a broadly diverse complementary programme – a unique combination. New for 2015 is the Plaza Academy that I mentioned before, where there will be a revolving programme of lectures. We are particularly pleased, in this regard, about the collaboration with OPI which will be dedicating Monday, 2 February to topics of international interest within the sector. The day begins with a talk by keynote speaker Jeanette Huber from futurologist consultants Zukunftsinstitut called ‘Look into the future – trends and megatrends that are driving change in the office supplies sector’. This will be followed by two discussion sessions on changes in the paper, office supplies and stationery sector. All lectures last 45 minutes and will be translated simultaneously into English. There will be, also for the first time, a ‘Future Store’ at Paperworld in 2015. Here, visitors will discover new ways of integrating digital elements into the high street shop. For instance, the linking of an online shop and the high street business helps with stocking and ordering.

On top of that, there will be presentations on future trends such as beacon technology whereby a mini transmitter in a shop sends product information to customers’ smartphones. Of course, we have also retained visitor magnets such as the Trend Show in Hall 6.1 and other popular highlights. OPI: What was behind the decision to move Remanexpo and what has been the reaction from exhibitors? CvG: The Remanexpo product group will be moving to Hall 6.0 in 2015. This location is ideal, both for visitors and for exhibitors: it is close to the Torhaus entrance (and the S-Bahn station) and can be easily reached by the Via Mobile. The hall has been recently renovated and is the ideal size for the number of exhibitors involved in remanufactured and OEM printing accessories. We are delighted to have received so many positive reactions from the exhibitors – the central location in Hall 6 is, after all, a very good argument. OPI: Any plans for a show every two years? There has been pretty much constant speculation about that for the past few years. CvG: The idea of a two-yearly cycle was a major topic last year and we spent a lot of time discussing it extensively. It is very important to us to secure the

close agreement of the sector before we undertake major conceptual developments. Polls were conducted among the exhibitors and the professional associations, and a large number of personal consultations and discussions undertaken. What emerged from this was that the vast majority of exhibitors are in favour of an annual cycle. We suggested several possibilities in this regard and discussed how exhibitors can best take part on a biennial basis and how they might make optimum presentations of their company, their goods and services – and that resulted in the Paperworld Plaza. OPI: What about changing the show date? CvG: We are sticking with the date of the last weekend in January. This was also the preference that emerged from our poll. In the questionnaire, we suggested a show date in the second half of the year and also offered an alternative at the end of August. Our exhibitors and partners turned down all these suggestions. OPI: Is there room for two shows – do you see Insights-X as competition and a threat to Paperworld, potentially losing exhibitors and visitors? CvG: Paperworld is, and is set to remain, the most international and largest platform for the paper, office supplies and stationery sector – and not only because of its ideal geographical location. Anyone looking for a global overview of the sector, at one time and in one place, comes to Frankfurt. w w w.opi.net | OPI Magazine

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2014 | Year in Review

A year of rapid change A look back at some of the biggest European OP stories from 2014 JANUARY

FEBRUARY Document and information security vendor Martin Yale International changed its name to intimus International and said it would cease the distribution of its Martin Yale and Papermonster brands. Sweden-based envelope and packing manufacturer Bong unveiled a three-point plan to help turn around the business which included a focus on Russia and Eastern Europe, a reduction in expenses/production capacity and margin improvement. US coffee firm Green Mountain revealed it was going to launch the Keurig brewer into the away-from-home market in the UK in the second quarter of 2014. Austria-based group PBS Holding acquired Slovakian contract stationer and wholesaler Lamitec, which joined B端roprofi Kanex. SCC strengthened its print services division with the acquisition of M2 Digital, a UK independent managed print services business.

As part of an exclusive wholesaler agreement with Spicers, XPD decided to terminate its agreement with VOW from the end of March and cease trading with its Simply Office VOW-aligned group. European distributor ALSO agreed to buy Netherlands-based competitor Alpha International from its holding company Saphin. The deal closed in May. European wholesaler ADVEO brought a third dealer network into its French portfolio after confirming the acquisition of Buro+ for H380,000. The wholesaler also agreed to sell its industrial business unit to Swiss investment fund Springwater Capital for H16 million. UPM closed its Docelles paper mill in France after failing to find a buyer for the facility, reducing its fine paper capacity by 160,000 tonnes. After almost a century, the National Association of Paper Merchants (NAPM) announced that it would wind down after the loss of members PaperlinX and Antalis and ongoing competition concerns.

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Year in Review | 2014 MARCH European IT and office products distributor ACI Supplies filed for bankruptcy at its own request. The company had enjoyed a meteoric rise, growing sales to over H750 million by 2012 and expanding into several European markets. Online trading platform Mercateo launched its eighth entity outside Germany, this time in the UK. Germany-based Francotyp-Postalia entered into an agreement with Büroring to supply its 350 dealer members with mailroom solutions.

APRIL Biella hit the acquisition trail again with the purchase of Swiss stationery and filing supplier Carpentier. This deal followed Biella’s recent acquisitions of Falken and Hamelin’s private label folder business. Trading in the shares of paper group Sequana – owner of Antalis and Arjowiggins – was suspended on the Euronext Paris exchange at the request of the company. It also announced that it had reached an agreement in principle with its banks to restructure the group’s debt. Ocay, a new name in the Swedish office products market, was unveiled. Ocay was born out of the 2013 merger between resellers Gullbergs and Kontorsvaruhuset that created a SEK1.1 billion (H105 million) firm with a sales force of 130 and 38 retail locations across the country.

MAY

Alan Ball After more than four years in charge of Spicers, Alan Ball left his position as CEO of the UK wholesaler as the company continued to experience serious supply issues. Ball’s successor had already been lined up by owner Better Capital in the form of Greg Michael, an experienced C-level executive with proven turnaround experience. As OPI suggested when Michael took over, his tenure was to be a short-lived affair and he left in December. Office2office’s (o2o) shareholders overwhelmingly rejected a proxy challenge by US investor Nick Gerber.

OPI Magazine | European Annual Review 2015

Gerber was seeking to install himself and two of his nominees on the board in order to pave the way for a reverse merger between o2o and two firms controlled by the US investor. Aftermarket supplies manufacturer Armor reorganised its Office Printing division in a bid to become Europe’s leader in compatible printer cartridges. The announcement came just weeks after a senior management buyout. German binding and laminating products manufacturer Renz was acquired by a group of private investors. Michael Schubert was appointed to head up the company while Georg Saint-Denis took over as CEO of the 100-year-old business. German retailers Media Markt and Saturn – both owned by the Metro Group – teamed up with delivery service provider tiramizoo to pilot same-day delivery. Saturn said it would test the express delivery service in Berlin and Munich while Media Markt was to pilot the service in Düsseldorf, Essen, Mainz and Mannheim. Remanufacturer component supplier Static Control opened a new office and distribution centre in Turkey. The Insights-X show – a potential competitor to Paperworld Frankfurt – was announced and given backing by some of the industry’s biggest vendors such as Faber-Castell, Staedtler and Stabilo. The show will take place in Nuremburg, Germany, from 8-11 October 2015.

2014 | Year in Review JUNE Bunzl acquired Allshoes Benelux in the Netherlands and JPLUS Comércio e Distribuição in Brazil. By the end of the year, Bunzl had acquired 14 companies. In other jan/san news, field marketing agency Product Promotion Services was appointed by FM distributor Robinson Young to provide sales representation in the UK. Also in the UK, reseller Banner Business Services expanded its facilities supplies category to over 14,000 products, covering everything from catering to front of house and washroom to premises management. Highly respected OP exec Gordon Scott announced his retirement. Scott was well known throughout Europe after joining Newell Rubbermaid in 2002 as General Manager for Office Products in the UK and was instrumental in expanding the business in EMEA. More than 100 CEOs and senior industry figures attended the BOSS Federation Members’ Day in the historic setting of Stationers’ Hall in central London.

AUGUST UK office supply groups Vasanta and office2office (o2o) announced a merger following an offer for o2o by Vasanta’s private equity owner Endless. Endless – which set up a new company called EVO Business Supplies ahead of the proposed deal – offered £19.1 million (H24.6 million) for o2o. BIC announced the sale of its Sheaffer brand to upmarket stationery and accessories company AT Cross for about $15 million (H12 million). Thai paper manufacturer Double A resumed production of the Evolve brand at its Alizay mill in France which it had bought from Metsä Board in early 2013.

JULY The first of two major consolidation stories in the UK occurred with Spicers owner Better Capital acquiring leading dealer OfficeTeam for £80 million (H101 million) and then merging OfficeTeam with Spicers to form SPOT. The deal certainly raised eyebrows in the UK market, in particular with regards to Spicers’ wholesaler ‘neutrality’. The board of Pelikan Holding accepted the proposal of its parent company Pelikan International Corporation Berhad to integrate a number of Pelikan subsidiaries into Herlitz. This followed the announcement by Pelikan to consolidate its stationery manufacturing distribution business into Herlitz. But the Pelikan name will survive. Two high-profile appointments were announced this month. The first was Oliver Windbrake who was named as Managing Director of German business products manufacturer Sigel. In Sweden, Stéphane Hamelin took up the mantle as CEO of Bong after the resignation of Anders Davidsson. French reseller Fiducial Office Solutions said it would shut down its loss-making Saciprint commercial print division.

SEPTEMBER Lyreco’s COO Samuel Avenel left the reseller after less than 18 months in the job. The company said the decision was by “mutual agreement”. Quantore left BPGI following its membership of Interaction. The company said its original intention was to stay with both groups, but it had to make a choice as Interaction does not allow multiple membership. European reseller alliance Samuel Avenel EOSA announced the successful implementation of the first phase of its new strategy. This involved establishing its own preferred programmes following its earlier decision to leave BPGI. EOSA signed partnership agreements with OEM suppliers covering 19 different product categories.

Gruppo Buffetti confirmed it would take a stake in Italian high-end gift and stationery company Camp Marzio, something which the company said would pave the way for international expansion. www.opi.net | OPI Magazine

2014 | Year in Review OCTOBER

NOVEMBER

OfficeTeam got back Jeff Whiteway on the acquisition trail by acquiring Chessington-based Buro Business Supplies. Jeff Whiteway, Group CEO of SPOT – the combined Office Team and Spicers entity – hinted at more acquisitions to follow. Only month after Lyreco’s COO Samuel Avenel left, CEO Steve Law announced he would be leaving the global reseller, bringing to an end a 25-year career with the company. Law revealed that his CEO contract was for a fixed three-year term and that it had always been his intention to step down at the end of 2014. His successor was named as Hervé Milcent. Office Depot provided further details of some of its European restructuring plans following the announcement that it is to cut 1,100 jobs in the region. The reseller confirmed plans to consolidate two of its distribution centres in Germany into one and also the closure of its Viking call centre in France. Spanish investment firm PHI acquired shredding and data security products manufacturer intimus for H750,000. Intimus’ former owner Escalade had already indicated that it was looking to offload the company following the sale of the US-based Martin Yale business at the end of June.

OTTO Office confirmed that its parent group Otto Group had put the reseller up for sale. Otto Group had instructed an investment bank to find a buyer for the mail order/internet reseller. After an extraordinary general meeting, German dealer group Soennecken announced it was legally entitled to sell directly to B2C and B2B end consumers, potentially making it a direct competitor with its own members. Avery owner CCL acquired UK firm Label Connections, a designer, manufacturer and marketer of a range of pre-die cut pressure sensitive labels. Avery said the company offered a route to market in a new product segment. Germany’s largest independent dealer Kaut-Bullinger acquired dealers Team Roscher and Georg Mattheus, expanding its reach northwards from its traditional stronghold in and around Munich. More acquisitions were said to be in the pipeline.

DECEMBER Five European envelope manufacturers were hit with large fines as part of a settlement with the European Commission over breaches of antitrust rules. The Commission fined Bong (Sweden), GPV and Hamelin (France), Mayer-Kuvert (Germany) and Tompla (Spain) an aggregate sum of more than H19 million for coordinating prices and allocating customers of certain types of envelopes. Metsä Board announced it would exit the paper business completely by the end of 2017 as it converts its machines from paper to paperboard at its Husum mill in Sweden. This move will remove 600,000 tonnes of annual paper capacity. French mail order reseller JM Bruneau was rumoured to have been acquired by Weinberg Capital Partners from its owner Argosyn – a joint venture established in 2013 by the Otto Group and France’s Mulliez family (see page 20 for more details). The Swedish OP community saw the creation of the country’s largest office supply dealer group when

independent dealer retail chain RKV announced it had acquired dealer group NioFem. The addition of NioFem boosted Nordic Office Alliance member RKV to a H135 million group with 57 stores, 24 members and more than 600 employees.

www.opi.net | OPI Magazine

Market Focus | France

B2B drags French market down The

French office and stationery market fell in the single digits in 2014 according to the latest figures released by local trade association UFIPA. UFIPA’s most recent monthly update – which includes sales to the end of November 2014 – indicates that the market declined year on year by an overall rate of about 1%. However, it was a mixed set of results depending on the sales channel, with B2C sales generally outperforming sales to commercial customers and results being boosted by what was regarded as a strong back-to-school (BTS) season. The superstore channel – which includes success stories such as

(%)

bumpy ride this year. The 1% overall decline was, in fact, quite a resilient figure, thanks in the main to a successful BTS season for those resellers that focus on this time of the year. BTS sales at superstores jumped 9% and were up in the low single digits in the mass and traditional stationery retail channels. There was also a spot of cheer for the manufacturing community: although volumes were down in the

The [French] OP industry could be in for another bumpy ride this year Bureau Vallée – was the standout winner, gaining share in a declining market. Superstore sales to the end of November were up about 3.5% year on year and were mostly positive throughout the year. On the other hand, the mail order direct channel experienced negative year-on-year comps for ten of the first 11 months of 2014, and was down by an overall figure of about 5% versus 2013, with November – at -9% – the weakest month of the year. In fact, all reported specialist reseller channels saw sales drop in November, in line with worsening consumer spending and industrial output figures in the French market as a whole, suggesting that the OP industry could be in for another

French office and stationery market November 2013-November 2014 Monthly sales change compared to same month a year earlier

(Source I + C)

B2B sales have been hit by the depressed French economy, although there was some cheer for back-to-school resellers

year, a better product mix and the fact that brands took some share from private label products meant that sales increased by about 1%. These branded product market share gains only occurred in the B2C and SMB channels. Fierce price competition in the contract channel once again led to price erosion here and a continued move to own-brand products.

Bruneau for sale? Leading French reseller JM Bruneau was said to have Nicolas Potier been acquired in December by Weinberg Capital, according to reports in the French financial press. According to Les Echos, JM Bruneau had been acquired in a H100 million ($120 million) deal by Weinberg Capital Partners from its owner Argosyn, a joint venture established in 2013 by the Otto Group and France’s Mulliez family as part of the arrangement that saw OTTO Office and 3 Suisses taken over 100% by the Otto Group. Argosyn had reportedly been seeking a buyer for JM Bruneau for several months after hiring financial advisory and asset management firm Lazard. JM Bruneau – founded in 1955 by French mail order pioneer Jean-Marie Bruneau – has sales of about H300 million and also operates outside France in Belgium, Germany, Luxembourg, the Netherlands and Spain. However, according to OPI sources, the acquisition has not yet taken place, although discussions between the parties are ongoing. JM Bruneau’s Managing Director Nicolas Potier declined to comment to OPI on the acquisition rumours.

OPI Magazine | European Annual Review 2015

Event Review | ADVEO World Germany

A catalogue of success For ADVEO Germany, the printed catalogue is still the key selling tool

THE

hardback version of ADVEO Germany’s annual catalogue is a highly sought-after item judging by the rush of dealers trying to get their hands on one at the end of the 2015 catalogue presentation made by Ulrich Paulus, Director of Marketing and Merchandising at the German wholesaler. Any talk of the death of the office products catalogue is certainly premature, at least in Germany where, Paulus revealed, 75% of ADVEO’s dealer orders are still placed using the printed catalogue. That was one of the interesting figures thrown up by ADVEO’s latest end-user market research. Astonishingly, about 50% of customers still use the fax order form that is printed in the catalogue, while only around 10% of orders made are purely electronic from start to finish.

Steady SKUs Those numbers are changing, of course, as millennials increasingly take on positions of responsibility in the workplace but, Paulus added, ADVEO’s research was conducted across a broad range of age groups, suggesting that catalogues still have a few years’ life left in them yet. Consequently, ADVEO Germany is printing 250,000 catalogues in 2015 – the same as last year – featuring around 20,000 SKUs. The overall SKU figure is also steady, but some traditional products have made way for newer, growing categories such as facilities management (FM) supplies and 3D printing (see box, ‘3D printing set to take off’).

OPI Magazine | European Annual Review 2015

Paulus added that the end-user research also revealed some important data about what customers want from dealers. The top three reasons that customers use dealers are: high service levels; having a named contact person at the dealer; and product knowledge. “They don’t use dealers because they see them as having the best price,” he noted. “It’s important for dealers to realise that, because sometimes they can be too focused on price.” The catalogue presentation was made on the second day of the ADVEO World Convention, the annual gathering of ADVEO’s dealer customers in Germany Ulrich Paulus which took place at the Olympic Park in Munich at the beginning of December. About 1,000 visitors attended the Convention which featured a vendor expo with almost 90 suppliers.

75% of ADVEO’s dealer orders are still placed using the printed catalogue

Mixed results for ADVEO Germany 2014 was a year of mixed fortunes for the different segments of ADVEO’s business in Germany. Overall, sales were down by about 5% year on year, but this number was dragged down by double-digit declines in the IT and EOS business which was affected by some logistics issues caused by the announced closure of a distribution facility in Winkelhaid, near Nuremberg (although the site will now stay open until 2016). Strong growth was seen in sales to retail customers, where the wholesaler is reporting some success in cross-selling traditional office supplies to IT-focused retailers. ADVEO is also winning customers in non-OP channels such as industrial supplies where B2B resellers are increasingly adding OP to the assortment. Sales to what ADVEO terms as ‘systems’ dealers – including the Calipage and OfficeStar groups – grew by about 5% in 2014. Calipage membership in Germany has stalled at around 60, but the wholesaler is hoping to attract more dealers after introducing a fully-integrated marketing plan for 2015 and relaunching the Calipage web shop.

ADVEO World Germany | Event Review

3D printing set to take off There was a real buzz at the ADVEO World Germany event surrounding the catalogue launch of the wholesaler’s 3D print offering. UK firm Environmental Business Products (EBP) has been awarded a pan-European contract Aleem Hosein by ADVEO for its St3Di 3D printing brand, and owner Aleem Hosein and his team were rushed off their feet throughout the two-day expo in Munich. EBP is offering two 3D printer models, the 200 and 280 (the numbers refer to the width of the printing plate), which have a recommended retail price of around H1,400 and H2,000 ($1,660 and $2,370) respectively, excluding sales tax. Hosein said that dealer margins for the printers and for the range of filament supplies that go with them are likely to be very appealing. Dealers have the option of transactional selling (selling customers the machines and supplies) or offering a 3D printing service. Amy Horn, EBP’s Head of Collections, told OPI that most dealers were more interested in the first option as it was an “easier sell”. Service selling, on the other hand, requires more of an investment in systems and expertise. Given the strong interest from dealers, it looks like 3D printing could really take off as a new category for the office reseller channel in 2015. EBP was also in Paris in January at the ADVEO World France event and was expected to be making a major announcement for the UK market just after this issue of OPI went to press.

The vendors that OPI spoke to were generally happy with the turnout, although some noted a decline in visitor numbers compared with previous years, and there were some question marks about the need for a two-day expo. “This is a good opportunity for us to have direct contact with the smaller dealers that we don’t normally see,” Falk Butterwegge, Head of Office Supply/Stationery & Online International Sales Consumer & Craftsmen at tesa, told OPI. Butterwegge explained that tesa was using its market-leading position in the DIY channel to introduce new products for B2B resellers as they offer more FM products. “To a certain extent, we can copy and paste that DIY success story into the dealer channel,” he added. Falk Butterwegge The Germany-based vendor has been running a major campaign for its double-sided adhesive tape

for use at home and in the office. “More and more offices are for rent only, so you are not allowed to drill into the walls,” Butterwegge continued. “That means dealers can offer solutions using our adhesive tape.” Bi-silque’s Key Account Manager Alina Chaberska Da Costa also noted the need to find new niche markets to drive growth. “While the overall viscom market is stable, there are interesting growth opportunities with, for example, eco-friendly products which go down well with German customers,” she said. She also pointed to the need to adapt product and service offerings to the needs of specific dealers. “For online dealers, delivery is a key factor, while an education-focused dealer will require an educational range that meets national certification requirements.”

Connecting with end users Markus Eppensteiner, Sales Manager, Commercial & MMR at Avery Zweckform, revealed that the labels manufacturer is placing a lot of emphasis on e-commerce and social media to connect dealers with end users. “We are trying to attract a younger generation through things like our recently launched Facebook account,” he said, adding that the company was also trying to tap into the general consumer market with its Avery Living concept (which is known as Avery Home in markets such as the UK). “We are also trying to help dealers improve their online shops,” he continued. “Like everyone, we are seeing the shift to online; it will be the purchasing channel for the younger generation, so we are providing our resellers with resources like banners and video and other online content.” Preceding the Convention was the ADVEO Congress, a one-day invitation-only event for about 180 key trade partners. Held at the Allianz Arena, this featured a keynote presentation on the future of business and a talk by Stefan Kuntz, Chairman of the Kaiserslautern football club, who described how the football industry has had to adapt to the enormous changes that have taken place in the past 25 years – with a clear message to the OP world about the need to embrace and adapt to change.

T3L Group Business Development Manager Peter Achterberg talked to OPI at the ADVEO World event in Germany about the state of the German office products market. Scan the QR code to watch a video interview with Achterberg.

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Reseller Focus | Italy

On the way up At November’s Big Buyer show in Italy, OPI caught up with some of the country’s leading OP businesses to find out what’s happening locally

THE

consensus at the 2014 Big Buyer show in Bologna was that the Italian OP industry had hit rock bottom and was now slowing inching its way back up again. One of the major topics of conversation was the move to a digital world. While many people OPI spoke to lamented the lack of willingness to enter the digital world on the part of small dealers, major wholesalers and franchise groups were implementing systems for resellers to take advantage of technology. Below is an update from some of the wholesale and reseller players in the Italian OP and stationery market that OPI met at the show.

ADVEO In the face of a still declining Italian OP market, wholesaler ADVEO managed to grow 6.5% during 2014 in Italy. Speaking to OPI, ADVEO Sales Director Maurizio Ferri said one area of growth was that of drop shipments due to dealers evaluating their cost structure. Following the global trend of diminishing traditional OP sales, ADVEO has experienced significant growth in segments such as jan/san, facilities management and back-to-school (BTS). The European wholesaler will continue focusing on its growth areas in 2015, in particular stockless dealers, BTS and retail. For stockless dealers, ADVEO has launched a cloud-based ERP system with an integrated B2B web portal. End users can purchase through a dealer’s portal and the order is sent straight to ADVEO. Other benefits include automatically updated product and price lists, stock levels that can be checked in real time, and access to customer details and order history.

MYO 2014 was a period of ‘settling down’ for the contract stationer after a few tumultuous years. Managing Director of parent company BI/Holding Lorenzo Rudella said the company had now completed its reorganisation and sales were growing again as it focused on the SOHO market and added key accounts and larger customers. MYO spent 2014 broadening its non-traditional OP category products and will make a huge push for specialisation in 2015, starting with jan/san. “We are trying to move out of general OP and become specialists. Today, presenting clients with just a stationery catalogue is simply flogging a dead horse. While the stationery segment remains stable, it’s difficult to keep a customer interested with just those products,” said Rudella. For 2015, Rudella’s goals are to develop the business in terms of new customers and increase turnover. Adding more products for MYO’s sales force remains a priority in the face of declining margins and high costs in a shrinking market.

OPI Magazine | European Annual Review 2015

Office Distribution Wholesaler Office Distribution (OD) started 2014 by taking control of its logistics and bringing it back in-house. The logistics acquisition and flat sales led to zero growth for the company in 2014. CEO Andrea Ghidini said the company “chose not to grow” as it refused to follow competitors in “dumping prices”, but instead elected to concentrate on building customer relationships and services. The net result, according to Ghidini, is a larger base of customers. Office Distribution has also been expanding considerably outside traditional office supplies and electronic office supplies, with its security segment growing exponentially. For 2015, OD has created a ‘hybrid’ e-commerce website aimed at bringing back customers to the traditional stationery store. “The website offers a marketplace similar to Amazon but with the face-to-face customer service of the traditional store,” said Ghidini. The click-and-collect service means end users can only pick up purchases at a preferred store. The website will also offer non-stationery related products that a traditional stationery store would not normally sell and which OD will deliver direct to the store.

Italy | Reseller Focus In Ufficio Adriano Alessio, President of Italian OP reseller association AIFU and CEO of dealer group In Ufficio, told OPI that for the nine months until the end of September 2014 he considered the Italian OP market to be relatively stable at just -1.9%. The consumables market, however, was down 12% with compatibles down by 4%. Even more disturbing for Alessio was the growth of grey market products. “The grey market affects everyone and eventually destroys the ethics of the industry,” he warned. Still, bright spots included a 10% growth for the furniture segment and stationery growing 4%. For In Ufficio, meanwhile, up until the end of October members’ aggregate sales were down about 2.2%. In light of 50% of available products affected by price

Gruppo Buffetti Franchise retail chain Buffetti reversed declining revenues in 2014 with slight growth. Buffetti General Manager Francesco Villa told OPI the company had maintained its position in the pure OP business and is experiencing double-digit growth in the education market, which it entered a few years ago. The group also branched out into the international market with a shareholding in Campo Marzio, a high-end gift retailer with a presence in Australia, Canada, Japan, China, Malta and Puerto Rico. “With Buffetti’s strong financial position, we are always looking for possible acquisitions with synergistic businesses,” said Villa. Developing its business model over the past four years to make local points of sale the heart of the system, this will continue through its franchise network. However, the company also recognises that the internet is forcing change and now is the time for small dealers to outsource many services such as accounts and logistics and take advantage of the web and e-commerce. “Buffetti is well placed to offer these services to our franchisees,” said Villa.

sensitivities, Alessio is looking to a wider range of products to offer dealers. “I am giving my dealers the opportunity to deliver to their customers a promise – they should be able to offer between 20,000-40,000 SKUs. We will supply the products within 48 hours so they can deliver on time for their customers,” he stated. To make good on this promise, In Ufficio has expanded its online catalogue and implemented a comparable IT products website. The group is also preparing to launch a new database and software to help its members grow.

C’ART In 2014, gifts and stationery retailer C’ART grew 32%, although 20% of this growth came from the opening of four owned stores and four franchises. Working in C’ART’s favour, according to the company’s CEO Stefano di Veroli, has been the increasing closure of stationery stores based in shopping centres where C’ART has retail outlets. He said this, coupled with supermarkets devoting less shelf space to stationery, has led to an increase in market share for the retailer. The back-to-school (BTS) season for C’ART was especially good, according to di Veroli, but he was reluctant to attribute it to increased general consumer spending. “Sales were good, but I think we were lucky in 2014 and benefitted from poor weather during the summer. This makes it difficult for us to buy for the BTS season in 2015,” he said. C’ART is eyeing the international market – most likely China – for the second half of the year. A stumbling block, however, will be to retain the 30% of sales the retailer currently derives from the education market. “The education market is very particular to each market so we have to replace school products in international markets. We would also go direct for our first experience, but look at a master franchiser to take the business further,” explained di Veroli.

In brief… Durable announced a name change for its bestselling Megaframe product line to Duraframe. The reason for the change, according to Durable Italy Sales and Marketing Manager Alfredo Bonazzola, was the necessity to brand the family. Growth for the company was up 10% from January to September 2014, and Bonazzola said the company would be looking at new distribution channels for industry areas such as catering and visual communication. Stamp manufacturer Trodat recently bought Italy-based Porta and C, a sales representative and distributor of Trodat. The acquisition gives Trodat its first subsidiary in Italy, extending brand awareness across the country. Fellowes and its Italian partner Leonardi said the company’s double-digit growth in Italy was due to a sharp focus on distribution and sales. The company improved its brand awareness through an enhanced website and 2014 was likely the last time a physical catalogue was produced. Fellowes Italy is also expanding in a completely new direction when it launches mobile accessories Body Glove and the recently acquired Optrix into the Italian market.

w w w.opi.net | OPI Magazine

Product Showcase | 2015

Paperworld product showcase New Printer with Microban® antibacterial protection COLOP Stamps with antibacterial protection: the long-time classic from COLOP is a bestseller in the office products industry and still in demand. For this reason, the Austrian stamp manufacturer has launched its new Printer stamp in a Microban® version. The areas that come into direct contact with the hand during stamping – the XXL image window and the handle – are Microban® treated. And because the protection is already built into the plastic material of the stamps during the manufacturing process, it is active throughout the useful lifespan of the products.

Contact: Gerald Binder Tel: +43 7242 66104 Email: gerald.binder@colop.co.at Website: www.colop.com Paperworld Hall No: 3.0 (F10)

New COLOP Printer COLOP 2014 saw the launch of the seventh generation of COLOP’s bestselling self-inking stamp, the Printer. It was an impressive upgrade thanks to a unique, modern design and numerous technical innovations and enhancements. The core USP of the product is the opportunity to create the design for the XXL image window. Whether used for photos, QR codes or company logos, COLOP’s Printer always provides the right solution for almost all requirements. To support this, COLOP has also developed new software tools for the B2B sector and consumer end users.

Contact: Gerald Binder Tel: +43 7242 66104 Email: gerald.binder@colop.co.at Website: www.colop.com Paperworld Hall No: 3.0 (F10)

Discovery 70gsm paper

Navigator Eco-Logical 75gsm paper

Grupo Portucel Soporcel

Discovery 70gsm was specifically tailored to deliver exceptional performance on high-volume printers and copiers with a massive reduction in the use of resources. Comparing Discovery 70gsm with a competitor standard 80gsm, 37% less wood is needed for the same quantity of paper. But this is not all. Thanks to its lighter weight, Discovery 70gsm will also reduce paper waste by 13%. Discovery 70gsm is the right answer for eco-conscious paper users: high runnability with fewer resources!

Produced on a state-of-the-art paper machine, in combination with the highest quality fibre – Eucalyptus globulus – Navigator Eco-Logical is a unique, lightweight premium quality paper, with superb thickness and stiffness. A combination of high whiteness and a smooth surface offers you the best printing results, even in the most demanding applications using colour. Navigator Eco-Logical 75gsm also promotes a balance between a reduced usage of natural resources and optimal performance levels associated with a premium quality paper.

Contact: Ricardo Ferreira Tel: +35 19359 78410 Email: ricardo.ferreira@portucelsoporcel.com Website: www.navigatorecological.com/ Paperworld Hall No: 3.0 (D80)

OPI Magazine | European Annual Review 2015

Contact: Ricardo Ferreira Tel: +35 19359 78410 Email: ricardo.ferreira@portucelsoporcel.com Website: www.navigatorecological.com/ Paperworld Hall No: 3.0 (D80)

4 March 2015, Hotel Okura, Amsterdam Winners of the fourteenth annual European Office Products Awards will be announced at a glittering industry dinner on 4 March 2015 at the Hotel Okura, Amsterdam

Which companies are leading the way in Europe? Which products offer something new in the European market place? Which executives have made an outstanding contribution to our industry?

BOOK NOW To book your seats at this unmissable networking event or for more information visit www.opi.net/EOPA2015 or email awards@opi.net

Presentation Dinner

EOPA Presentation Dinner

Your OPI

5 minutes with... Donato Colucci, Marketing Coordinator, Errebian

Describe what you do in less than 20 words. Managing the life cycle of the office supplies product range and specifying market requirements for current and future products. Basically, I try to get people excited about OP. The worst job you’ve ever had. Olive picking in southern Italy. I’ve learned that nowadays some people are even paying tour operators to do that. The industry figure you most admire. My father, Emanuele. He’s an OP sales rep in Matera, a small town in the south of Italy, and after 45 years he still loves his job. Your best piece of advice to someone who has just joined the OP industry. This industry needs fresh ideas. Speak up! What would you like to be doing in five years’ time? Be part of a great company that found its own way to tackle future challenges. Your favourite event on the OP circuit and why. The OPI Forum – it’s a great networking opportunity.

“I’m starting to feel something for jan/san”

The biggest change that has taken place in the industry since your career began. Wholesalers giving access to their online catalogues to an enormous number of pure web resellers. The first record you bought. Ten by Pearl Jam in 1991. Your childhood ambitions. To be a pilot. Things that make you angry. Traffic jams in Rome. Your greatest strength. Determination. The daily task that you like the least. Commuting to work – I could make so much better use of those 45 minutes. Any pets? No way – I can barely take care of myself! Do you have a tattoo? You must be joking!

Your favourite office product. Writing instruments is my speciality, but I’m starting to feel something for jan/san, too. What do you think will be the biggest single issue affecting the OP industry over the next five years? Increased flexibility in the workforce, meaning shared office space, temporary offices, working from home, less fixed employees and more consultants going in and out. What do you like best about the OP industry? Margins – we complain all the time about them, but others envy ours. The best way to spend the weekend. 10% mountain biking; 80% family; 10% friends.

What is mankind’s greatest invention? Can I name two? Bacon and peanut butter. www.opi.net | European Review 2015

Your OPI

Final word Your industry, your opinions Thorsten Köhler, Managing Director, Carstensen Import-Export

The trouble with Eurocracy Creating – and adhering to – standards for the benefit of consumers is commendable and necessary – but not an easy feat, especially across the myriad of Europe’s borders

ONCE

upon a time, there was a continent called Europe and all the countries on this continent were more or less governed independently. Trade was done in the respective local currency, by using the Deutsche Mark or indeed the world currency, the US$. As time went by, many European countries morphed into a common trade area. This was the time when Eurocracy started to raise its ugly head, regulating lawnmower noise emissions, banana bending, the light bulb industry and fishing rights, to give just a few examples. It remains a mystery to me how we were led to believe that a group of representatives from all member states were willing to and, importantly, able to, set reasonable and meaningful standards for essentially all things in all EU countries. Lawnmowers and bananas aside, the OP industry is equally badly infected with the disease of Eurocracy and over-regulation: REACH/SVHC, EUTR, RoHS, WEEE; specific toy standards such as EN 71, Parts 1-12, biocide regulations, phthalates; and of course social and environmental NGO requirements such as PEFC, FSC, SA8000… the list goes on.

Trying to keep abreast of the many regulations and standards that are set, changed and then changed again requires skilled and experienced professionals within an organisation as well as a large budget to pay for the ever growing testing fees of local testing institutes which, incidentally, are the biggest beneficiaries of Eurocracy. Understanding what standards apply to which type of product has also become an extended process requiring substantial resources involved in studying documents, inspecting and testing merchandise, auditing factories, certifying compliance and managing risks. Non-compliance in many European countries – and Germany is certainly one of them – can easily lead to serious brand damage and also poses a mounting liability for owners/management. This has led to an ever-growing demand for transparent compliance checks.

“While many companies play by the rules, this does not seem to be true for all competitors in any one given market”

Consumer protection The initial purpose of all these regulations was to protect consumers across Europe and that is a commendable goal. But many have effectively become non-tariff trade barriers at the same time. Applying identical social and environmental standards to the global manufacturing community to achieve a level playing field is an ambitious target, as is the protection of consumer health within the EU, particularly the health of our children. But how have all of us pre-Eurocracy-born citizens survived so many years while nibbling on our pencils and ballpoint pens bought from places that were certainly not in compliance with the present regulations? And how will consumers living in European countries where importers and distributors do not care about European regulations manage to live healthy lives? Let’s look in some detail at what it means nowadays to import office and school products, mainly from Asia and, within that, mostly from China.

OPI Magazine | European Annual Review 2015

Not playing by the rules While many companies play by the rules, this does not seem to be true for all competitors in any one given market, however, and certainly not for all markets in the EU. Indeed, looking at some (private label) office supplies and even school products, one could be forgiven for having serious doubts about their compliance with prevailing standards. Eurocracy is trying to set common standards for all countries, but surely the first step should be to have common standards for all players within one single country. Enabling manufacturers in Asia to earn good money to pay their workers a fair salary and to provide them with good social benefits is an excellent idea. Setting up sensible consumer protection standards for all imported products is an equally good idea. But how does that square with the demand for lower prices for most products every year? That’s been our biggest challenge in the past and will continue to be an even bigger challenge in the future. Thorsten Köhler is Managing Director of Carstensen Import-Export-GmbH, a company with offices across Asia that’s been servicing the OP industry for 25 years as an import service company.