BIG INTERVIEW
Nicolas Potier, Bruneau March 2022
INSIDE THIS ISSUE l Office Centre in trouble l Paperworld gone l Amazon Business Punch-in l Workplace wellness l Thrasio/IdeaStream: a meeting of equals l Smart air filtration l Creating the office of the future
Special Issue HEALTH & WELL-BEING
CONTENTS 14 Big Interview Under Nicolas Potier’s stewardship, France-based Bruneau has become a leading multinational player 22 Focus Why the coming together of Amazon aggregator Thrasio and IdeaStream is good news for the business supplies sector 44 Research The ‘metaverse’ – what is it or could it be? OPI sheds some light
Big Interview: Nicolas Potier, Bruneau
Bruneau has had three private equity owners since 2015, with the most recent transaction closing at the end of 2021 when it was bought by TowerBrook Capital Partners. For many, this revolving Special Issue ownership HEALTH might be a sign of turbulent timesWELL-BEING but, at&Bruneau, it has been just the opposite. Far from being a ‘distressed’ target for investors, the operator has been doing rather well, both on the top and bottom lines. This is due, in no small part, to the steady hand of CEO Nicolas Potier, who has successfully transformed the business from a largely France-focused catalogue reseller into a multinational B2B e-commerce player. FOCUS: A MEETING OF EQUALS
VENDOR SPECIAL
28 Category Update Workplace needs have changed, and employee health and well-being are at the top of the agenda
Special Issue HEALTH & WELL-BEING
34 Opinion Happiness is all about balance, says Lyreco’s Falko Köhler – at work and at home
Special Issue
VENDOR SPECIAL
36 Spotlight Air treatment systems are becoming a vital component of the office environment. Vendor experts explain why they should be
Special Issue
38 How To... ...reconfigure the workplace of the future. By throwing out the old rule book
VENDOR SPECIAL
42 Research Mental health and wellness – a key component of the post-COVID world of work
REGULARS 5 Comment 6 News 48 5 minutes with... Craig Noyle 50 Final Word Tim Holmes
March 2022
Our core customers have been very receptive to the idea of us bringing them brands that are really successful in the world of Amazon, but don’t yet have a home in traditional retail or wholesale. We are talking about brands with hundreds of thousands of five-star reviews and which are leaders in massive categories. The end consumer has already voted on these products in the digital world, but we’re now talking to our customers, urging them to put them on their shelves – wherever those shelves are. I think there’s a huge appetite for these successful items to have a home in more traditional wholesale and retail environments.
Special Issue
Special Issue HEALTH & WELL-BEING
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COMMENT The OPI team EDITORIAL Editor Heike Dieckmann +44 1462 422 143 heike.dieckmann@opi.net Deputy Editor Michelle Sturman michelle.sturman@opi.net News Editor Andy Braithwaite +33 4 32 62 71 07 andy.braithwaite@opi.net Freelance Contributor David Holes david.holes@opi.net
SALES & MARKETING Chief Commercial Officer Chris Exner +44 7973 186801 chris.exner@opi.net Head of Media Sales Chris Turness +44 7872 684746 chris.turness@opi.net Digital Marketing Manager Aurora Enghis aurora.enghis@opi.net
EVENTS Events Manager Lisa Haywood events@opi.net Event Programmer Sophie Carus sophie.carus@opi.net
PRODUCTION & FINANCE Studio Joel Mitchell joel.mitchell@opi.net Finance & Operations Kelly Hilleard kelly.hilleard@opi.net
PUBLISHERS CEO Steve Hilleard +44 7799 891000 steve.hilleard@opi.net Director Janet Bell +44 7771 658130 janet.bell@opi.net Executive Assistant Debbie Garrand +44 7718 660249 debbie.garrand@opi.net
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The workplace of the future: embrace it!
n my last comment, I spoke about green shoots appearing in an emerging post-COVID world. And as two years of firefighting slowly make way for a permanent reset that will bring some much-needed consistency again, all eyes are on the workplace of the future. This new workplace will have to focus – for the first time for many I would confrontationally guess – on both the specific business needs of an organisation and the more disparate ones of its staff. Employee happiness, satisfaction and well-being are important. With that realisation come responsibilities and opportunities. The little green sticker on the front cover and dotted throughout these pages denotes features which address the issue of health and well-being at work – and point to some of the said opportunities. Whether it’s an overall category round-up (page 28), a look at the need for cleaner air (page 36), a rethink of the physical office space (page 38) or a greater awareness and appreciation of mental health issues (page 42), there is a common theme: one-size-fits-all attitudes are – or should be – a thing of the past.
As two years of firefighting slowly make way for a permanent reset [...] all eyes are on the workplace of the future The same applies to the business supplies sector today. Taking a rain check is all well and good, but sometimes the potential benefits of a risky undertaking are just too tempting. I recently spoke to Tony DeCarlo about his company IdeaStream’s ‘liaison’ with Amazon aggregator Thrasio (page 22). ‘Foresight’ is the word that springs to mind when digesting what both companies have done and how they’ve positioned themselves for the future. I actually first came across IdeaStream at Paperworld in Frankfurt years and years ago, shortly after its – IdeaStream’s – creation. My point here? I would argue you can ‘blame’ COVID-19 for many things, but the downfall of Paperworld isn’t one of them (page 6). It might have been the final nail in the coffin, but the death knell was ringing long before. Lack of foresight? Also pre-COVID, the seeds for a multitude of collaborative efforts were sown at industry events. And I’m delighted to say that OPI will finally kick off its physical event schedule this month with OPI Partnership at the Hotel Okura in Amsterdam. It’s time to HEIKE DIECKMANN, EDITOR talk again – in person!
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March 2022
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5
NEWS
Analysis: Auf Wiedersehen, Paperworld Messe Frankfurt axes the dedicated stationery fair as part of a trade show reshuffle
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It has turned out that Paperworld 2020 was the final curtain for the stationery and office products gathering as a standalone show in the German city of Frankfurt. After being forced to cancel the event in 2021 and 2022, Messe Frankfurt has reorganised its consumer goods fairs taking place at the beginning of the calendar year, and there is now no place for the Paperworld trade show. Beginning in February 2023, the events organiser is to hold its Ambiente, Christmasworld and Creativeworld events simultaneously under the tagline of ‘Home of Consumer Goods’. The change comes after Messe Frankfurt admitted the “consumer goods industry is in upheaval”, but said combining the shows would offer “an unprecedented, simultaneously available, future-oriented product range in quality and quantity”. The main development as far as OPI readers are concerned is that the Paperworld name has been axed and its former product groups will now become part of the three remaining shows. The result is a new section of the Ambiente show called Ambiente Working. This will essentially cater to exhibitors at the previous ‘office’ offering at Paperworld, plus the Remanexpo event aimed at the compatible print supplies segment.
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MORE RELEVANT The new format is being pitched as more relevant to the modern workplace. Fringe programmes such as Future of Work and Sustainable Office look set to continue, but specific details about the educational components will be provided later this year. Citing the blurring of the office and the home as places of work, Messe Frankfurt said it was taking the opportunity to “rethink what Paperworld has to offer and to open up completely new and unique perspectives, and thus potential, for exhibitors and visitors”. “We are moving with the times, because new work and lifestyle trends are growing together immensely,” said Yvonne Engelmann, who is
Director of Ambiente Working, but also in charge of the Living and Giving sections. One area Messe Frankfurt believes will benefit is the contract furniture channel, which has historically been a strategic part of Ambiente. “This is not only about furnishing commercial properties, such as restaurants, hotels, co-working spaces or offices, but also about furnishing our homes, including home offices,” noted VP of Consumer Goods Fairs Philipp Ferger. “In other words, there is exciting synergy potential – for our exhibitors as well as visitors.” Other former Paperworld product groups are being divvied up into various parts of the new structure. Traditional stationery, paper-based products and school supplies will now come under the Ambiente Living section; items such as gift packaging will move over to Christmasworld; while creative writing, painting and drawing articles will be part of Creativeworld. There will still be a euphemistically named ‘global sourcing’ component, mainly comprising exhibitors from Asia, in its own location, but this will now include all product groups from the three concurrent events. Regular Paperworld visitors should have no problem finding their way around the new set-up. Ambiente Working will be located in Hall 4.2, not far from the walkway where OPI had its stand for many years. It should be noted that Messe Frankfurt’s changes only affect the annual Paperworld show in Germany. Other Paperworld branded events in Dubai, China (including Hong Kong) and India will keep the name.
We are moving with the times, because new work and lifestyle trends are growing together immensely
Ambiente will take place in Frankfurt from 3-7 February 2023. Creativeworld will start a day later, on 4 February
NOT A SURPRISE The news about Paperworld – which had been held in Frankfurt since 1997 – will not come as a major surprise to many. In truth, the event had been in decline for years, despite the best efforts of Messe Frankfurt to try and keep it relevant. The final nail in the Paperworld coffin must have been the last-minute decision to cancel the 2022 show because of the Omicron variant, and one can only wonder what the financial hit from that must have been. But the impact of the pandemic on Messe Frankfurt is clear for all to see. The organiser has said that its revenue in 2021 will be around €140 million ($161 million) – a massive drop from the €736 million it generated in 2019. Clearly, something had to give. Is it the end of an era? Possibly, but there will still be the Ambiente Working section being held in Frankfurt at around the same time of year, so perhaps it will not be a huge change when all is said and done.
The owner of the former Staples Solutions-owned retailing businesses in Germany and the Netherlands is seeking new investors The future of more than 80 office supplies stores in Europe has been thrown into doubt after two separate proceedings in Germany and the Netherlands initiated by New Office Centre Beheer (NOCB). NOCB operates 32 Office Centre outlets in the Netherlands and owns Office Centre GmbH, the entity that runs 51 Staples branded stores and the staples.de website in Germany. On 7 February 2021, the German subsidiary filed for bankruptcy, while the Netherlands-based business entered a local form of creditor protection (a WHOA) in order to undergo restructuring. Both networks were previously owned by Staples Inc (and subsequently by Staples Solutions) and were acquired by NOCB in separate transactions in 2018 and 2019, respectively. At the end of 2019, NOCB’s annual revenue was estimated to be around €220 million ($270 million). By early 2021, NOCB was feeling the squeeze from COVID-19, forcing owners Frans Davelaar and Goswin Fijen to seek an injection of capital. This led to NOCB being taken over in June of that year by Standard Office Holding, a subsidiary of Dutch private equity firm Standard Investment Management.
NOCB can only survive if we create a new financial situation through an agreement with creditors
Marc-Derek Schönberger
SET TO SPLIT As things stand, it looks as if the company will be split up, with the Staples stores in Germany being sold off and the Dutch assets continuing under the current ownership. In fact, Standard may already have hatched that plan as early as mid-2021 when it backtracked on a project to rebrand Staples in Germany to Office Centre. As to potential acquirors of the Staples retail and website operations, a local German player does not immediately jump out. Austria-based MTH Retail Group could be a possibility. It has been busy consolidating the Swiss business supplies landscape with the Office World Group and has almost 400 locations in Germany with its Mäc Geiz and Pfennigpfeiffer discount brands. The plight of Office Centre does bring back memories of the ill-fated Office Outlet venture in the UK. The former Staples UK retail arm – which had more than 100 stores – was acquired by Hilco in 2016 and rebranded to Office Outlet, before going into administration in 2019. Incidentally, the Office Outlet name has not altogether disappeared from the UK. While there are no physical stores, it still exists as an e-commerce business owned by Digital-First Retail – which also runs the online operations of another defunct bricks-and-mortar retailer, Maplin.
March 2022
BIG PLANS Standard had big plans to create a vertically integrated business products powerhouse in the north of Europe. Shortly after acquiring NOCB, it also purchased Staples Benelux which, it should be stressed, is not part of the bankruptcy and restructuring proceedings. However, further COVID measures in late 2021 and early 2022 have put more pressure on the retail sector, with a sharp decrease in store visits. This has led to liquidity shortages. NOCB CEO Marc-Derek Schönberger declined to comment on the situation when contacted by OPI, but the company did release an official statement shortly afterwards, saying it intended to relieve its debt burden and “responsibly restore business operations”. “By reorganising our debt, the group can proceed with its operations,” the statement read. “If liquidity is released, we can simultaneously comply with our financial obligations and reduce costs. “There is a future for the company in normal market conditions when given the time to realise its omnichannel strategy. But NOCB can
NEWS
Analysis: Office Centre in trouble
only survive if we create a new financial situation through an agreement with creditors.” In Germany, the business has been placed in the hands of administrator Sven Holger Undritz of White & Case. He has publicly stated that operations will continue to run as normal for the time being. In the meantime, he is seeking a new investor to lead the company out of insolvency. The Netherlands situation is a bit different. The WHOA allows for the incumbent management to keep running the business while a court-appointed restructuring expert will liaise with creditors and submit a continuity plan.
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NEWS
Stationery start-up gets $50 million in funding
UK direct-to-consumer stationery brand Papier is targeting US expansion after securing $50 million in private equity funding. London-based Papier raised the amount in a round of funding led by French venture capital firm Singular, with investors including DMG Ventures, the investment arm of Daily Mail and General Trust. It takes its total funding to $65 million following the $15 Taymoor million raised in 2019. Atighetchi Papier was founded in 2015 by entrepreneur Taymoor Atighetchi and specialises in design-led stationery products such as notebooks, journals, cards and invitations. The aim now is to develop the brand globally, particularly in the US, which already accounts for around 30% of revenue. Following this new funding, Singular partner Nahu Ghebremichael has joined the Papier board of directors.
TOP 100 – NEW ENTRY
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Dominique Bernard, Managing Director, ADVEO
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ADVEO owner Sandton Capital drafted in experienced senior executive Dominique Bernard at the start of 2022. He succeeded Philippe Guillotin, who had been with Spicers France/ ADVEO for 18 years, the last five of those as Managing Director. Bernard had been heading his own Dominique consulting business for Bernard the past few years, taking on short-term turnaround missions that even included a spell as General Manager of leading French football club l’Olympique de Marseille. Prior to that, he ran companies such as Campari France, Groupe Hersant Media and Comexposium. Sandton said Bernard would drive an “ambitious transformation” at ADVEO, aimed at both internal and external growth in France and Benelux. This will include strengthening the Calipage, Plein Ciel and Buro+ networks, expanding the product and service offerings for reseller partners, and developing its logistics capabilities. Last year, ADVEO opened a new state-of-the-art distribution centre in Dammartin-en-Goële, near Paris. It now has more than 54,000 sq m (540,000 sq ft) of floor space across four facilities.
Essity expands in North America
Cleaning and hygiene products specialist Essity has acquired US-based wipes supplier Legacy Converting in a deal that could be worth up to $50 million. New Jersey-based Legacy was founded in 2004 by Dr Jason Slosberg. It offers products within the categories of sanitising, disinfecting, chemical-ready and dry wipes, and is well known for its Everwipe brand. In 2020, Legacy achieved sales of $39 million as revenue grew by more than 180% year on year due to strong COVID-related demand. The same year, it announced a move to a larger production and distribution facility in Bordentown (NJ) and a revamp of the Everwipe branding. Sales tailed off somewhat in 2021. For the first nine months of the year, revenue was just over $15 million, almost 50% down on the 2020 figure, while its profit also declined – but it is still trending above pre-pandemic levels. Essity is paying an initial $40 million for Legacy on a cashand debt-free basis, with an additional earnout potentially reaching $10 million. The company confirmed to OPI that the existing Legacy management team – including Slosberg – is staying on and that Everwipe will continue to be marketed and sold under its own brand.
HP acquires sustainable packaging company HP Inc says it is well-placed to disrupt the $10 billion fibre-based sustainable packaging market after purchasing UK start-up Choose Packaging. The company is the inventor of what is claimed to be the only commercially available zero-plastic paper bottle in the world. Its patented technology provides an alternative to plastic bottles and can hold a wide variety of liquid products. HP said the acquisition will “pave the way for a new standard for bottling solutions globally”. Choose was founded by its Managing Director, James Longcroft, and is based in the Scottish capital of Edinburgh. Although its bottles were only launched in 2019, customers already include multinationals such as Henkel, Pernod Ricard and Accolade Wines. HP will integrate Choose into its Personalization & 3D Printing business.
Switzerland-based independent dealer Schoch Vögtli – created out of the merger of Büro Schoch and Vögtli Bürotechnik in 2016 – has been bought by local trading and distribution group Competec for an undisclosed sum. Competec, which has sales of CHF1.1 billion ($1.2 billion), has built up its own office and workplace supplies offering over the past several years, notably via its Brack Business subsidiary. It said the combination of Brack and Schoch Vögtli would give its B2B growth strategy “additional strength”. Schoch Vögtli can trace its roots all the way back to 1882. It was the largest remaining independent business products dealer in Switzerland – with annual revenue of around CHF30 million – following significant market consolidation over the past few years. The company also has a strategic partnership with PBS Holding for servicing PBS’ Global Accounts unit (acquired from Staples Solutions in 2021). A Competec spokesperson told OPI the group was looking forward to “continuing and developing” the relationship with PBS Holding. The new parent has taken on all 90 Schoch Vögtli employees and the dealership will continue to deliver to customers mainly using its own fleet of vehicles. However, Competec said it intends to integrate the Schoch Vögtli warehouse into its own Willisau logistics centre within the next few months. Former Schoch Vögtli CEO and owner Thomas Schoch admitted the company’s long-term future would have been challenging given the high investments needed in product range, logistics and IT.
Office Depot UK’s contract slide
NEWS
Swiss Schoch sold
The 2021 annual report of OT Group parent company Paragon has highlighted the recent plight of Office Depot’s contract business in the UK. OT Group took control of the larger mid-market, major and public sector contracts of Office Depot in the UK and Ireland in June 2021, with the deal closing in September. The transaction also included a facility near Manchester, which is now the main distribution centre of the whole OT Group in the UK. In its report for the 12 months ended 30 June 2021, Paragon said that, had Office Depot been acquired at the start of the financial year, its revenue would have been €47.4 million ($53.8 million, £39.7 million). Just five years ago, it was a business that was turning over more than £200 million ($271 million) in annual revenue – although the cumulative operating loss for the years 2016 and 2017 was more than £40 million. Paragon said that its Office Depot acquisition would have been EBITDA positive to the tune of €171,000 in its 2021 financial year to the end of June – an EBITDA margin of just 0.4%, so improving the profitability of its contracts will clearly be a priority going forward. OT Group confirmed to OPI that a decision on its full brand strategy – including the Office Depot name in the UK and Ireland – would be taken in March 2022, with an external launch to be made that aligns with its new financial year in July. With its business products companies – which also include OT Wholesale, Spicers Ireland, OfficeTeam and ZenOffice – now generating €100 million in annual sales, Paragon has created a new division called Paragon Office Services, which is headed by OT Group CEO Andrew Jones. The goal is for it to become a €350 million company by 2025. A recent UK government tail spend contract win will help towards that (see also Final Word, page 50), but some significant M&A activity cannot be ruled out either.
City of Hope expands US reach
575 physicians across a network of locations in California, Arizona, Illinois and Georgia. The National Business Products Industry has been a committed supporter of COH for many years, raising more than $230 million over the past four decades. Look out for more information about the 2022 ‘Restoring Hope’ campaign – led by Staples Inc Chief Merchandising Officer Peter Scala – and this year’s City of Hope Tour and Hall of Fame Dinner in the April/May issue of OPI.
March 2022
Cancer research and treatment organisation City of Hope (COH) has completed the acquisition of Cancer Treatment Centers of America (CTCA), a network of oncology hospitals and outpatient care centres across the US. The deal means COH now has one of the largest geographic footprints in cancer research and treatment, providing cancer patients in the US with timely access to exceptional care, clinical trials and leading-edge innovation. “With the completion of this acquisition, City of Hope and CTCA are combining complementary strengths, with a shared commitment to providing the best, most compassionate care possible,” said COH CEO Robert Stone. “Together, we are creating a new model for how cancer care is delivered, leveraging real-world cancer care experience to inform scientific innovation and making tomorrow’s new discoveries available to the people who need them today.” The combined organisation will serve approximately 115,000 patients each year, with more than 11,000 team members and
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NEWS
ON THE MOVE
Christa Furter
Kai-Uwe Heuer
Richard Smithers
Furter leading Viking RAJA Group has appointed Christa Furter to head its newly acquired Viking business in Europe. Furter is a former CEO of Swiss reseller Office World iba and also spent two years as Managing Director of RAJA subsidiary Udo Bär in Germany. At Viking, she takes over as Managing Director from Raffael Reinhold, who has now left the organisation. Key appointment at Büroring Büroring has appointed Kai-Uwe Heuer as Director of Finance, Logistics and IT replacing Jörg Schäfers who left at the end of last year after nine years on the board and 23 years with the German dealer organisation. Heuer will jointly manage the group with fellow board member Axel Hennemann. Smithers moves to Victor Richard Smithers has joined Ireland-based Victor Stationery as Director of Sales. The experienced exec was most recently at VOW Wholesale and previously Head of Sales at Spicers.
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Dual appointments at TUG US jan/san independent reseller organisation The United Group (TUG) has hired Kim Foster as VP of Member & Supplier Kim Foster Relations and Mark Prosser as VP of Sales – Strategic Accounts. Between them, they have more than 60 years of experience in the Mark Prosser jan/san industry.
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New role for Molidor US wholesaler S.P. Richards has promoted John Molidor to Director of Jan/San Merchandising. John Molidor Molidor has been with the company since 2013 and was previously with Newell Rubbermaid.
David Langdown
Jennie Kuhlke
Cindy Averlant
Langdown leaves BOSS board David Langdown has stepped down from the board of UK trade association BOSS after more than 15 years of service, including a spell as Chairman. Kuhlke joins Highlands Experienced business products exec Jennie Kuhlke has joined Highlands as Client Services Manager. She previously worked for S.P. Richards, FSIoffice and, most recently, Zep. Leadership change at Calipage French dealer group Calipage – part of ADVEO – is now being led by Cindy Averlant. After spending 15 years with the network, she has taken over from longstanding Director Agnès Maillard, who has retired.
Polyvision names CEO US visual communications supplier Polyvision has named Kevin McCoy as CEO. McCoy is a seasoned Kevin McCoy office furniture exec and spent more than 21 years at contract supplier Kimball, including four years as President of its National Office Furniture subsidiary.
Margaux Lefaucheux
Colleen Talbot
Lefaucheux to lead AF Margaux Lefaucheux has taken on new responsibilities at cleaning products supplier AF International after being promoted to Brand Manager. She has taken over from Paul Hardy, who left the supplier after more than ten years. Tombow promotes Talbot Tombow has named Colleen Talbot as Director of Sales for North and South America. She has been with the writing instruments manufacturer since 2014 and was most recently National Sales Manager.
Midwich snaps up Nimans
Audiovisual (AV) specialist Midwich has entered into an agreement to acquire fellow UK distributor Nimans and its subsidiaries in a £27.5 million ($37 million) cash deal. An initial consideration of £16.5 million, payable upon closing, will be followed by two fixed instalments of £5.5 million each after 12 and 24 months. Based near Manchester, Nimans was founded by Julian Niman in 1981. Initially focusing on the telecoms segment, it has since expanded into new areas such as unified communications, VOIP, videoconferencing, security, networking and AV. The company trades with over 2,500 telephony, IT and retail customers and employs more than 200 staff. In 2020, it achieved revenue of £114.3 million and a pre-tax profit of £5.8 million. The acquisition is subject to approval by the UK competition authority and is expected to close in the first half of this year. Midwich said it should be accretive to earnings in 2022. The deal will take Midwich’s annual sales run rate to about £1 billion.
Aussie group subsidises paper surcharge
There has been a lot of noise in the Australian market recently about a freight surcharge introduced by leading paper supplier Opal, maker of the top-selling office paper brand Reflex. Opal has added the surcharge – A$0.48 per ream of A4 – on deliveries to customers in Western Australia. Adam Joy, Managing Director of dealer group Office Brands, said this development could impact dealers by around A$15,000 (US$11,000) a year. “We are subsidising the freight for a short period to assist our Western Australia members while we look for longer-term solutions,” Joy told OPI. “We are working with Opal for an independent metric that provides clarity on when the freight surcharge can and will be removed.”
Amazon Business has introduced a twist on PunchOut catalogues with a new solution called Punch-in. PunchOut – where users access a supplier’s catalogue through their procurement system or platform – has become a standard format in corporate online purchasing. However, Amazon says these buyers sometimes start their purchasing journey within Amazon itself, thereby bypassing an organisation’s buying policies and compliance. To overcome this, Punch-in allows customers already in Amazon Business to directly submit their baskets to their company’s e-commerce system for purchase order creation and reconciliation. It cuts out the need to log into a procure-to-pay (P2P) system before making a purchase. Punch-in is currently available for Amazon Business customers that use the Compleat P2P platform, with new partners set to be added over time. Punch-in was launched on the same day in January when a new tail spend government contract in the UK went live. The suppliers on the latter are OT Group and Unite’s B2B procurement platform Mercateo (see also our Final Word about this new procurement platform on page 50).
Companies invest in circular economy
NEWS
Amazon Business launches new procurement solution
Two leading resellers in the business products sector made investments in the circular economy in February 2022. In Australia, Officeworks purchased a 21% stake in the World’s Biggest Garage Sale, a social enterprise based in Brisbane. The reseller plans to expand the business into a national recovery and repair service under a new brand called Circonomy. The aim is to create a national network of “circular economy precincts” that will cater for both businesses and consumers. These centres will encourage the resale of dormant or second-hand goods and will also provide Officeworks and other retailers with responsible waste management practices for their products. In Europe, meanwhile, Manutan has acquired an 80% shareholding in Zack, a France-based start-up specialising in electronic waste solutions. Manutan will use the investment to set up a large-scale IT assets recovery and recycling service for its business customers – something the reseller said was becoming “mission critical”.
Officeworks and World’s Biggest Garage Sale staff
March 2022 11
NEWS
IN BRIEF
Staples [Inc’s] revenues have suffered from lower demand from its core corporate clients as employees continue to work at home due to COVID-19. This weakness, and resulting pressure on profitability, has not been sufficiently offset by demand increases in the Pro segment and Staples.com Mickey Chadha, VP Moody’s, February 2022
$30.3 billion Third-party
s received by eller fees Am in Q4 2021azon
Böttcher rewards vaxed workers German online reseller Böttcher has spent around €2.5 million ($2.8 million) on bonuses for staff to get fully vaccinated against COVID-19. Approximately 500 employees each received €5,000 as part of the scheme.
£8.7 billion ($11.7 billion) BOSS confirms Charity Day
Write-off by the UK government related to spending on PPE supplies during the pandemic
UK trade association BOSS has said its 2022 BOSS Business Supplies Charity Day will take place on 15 June. The event will be held at the Belton Woods Hotel in Grantham. More details are available at www.bossfederation.com/charityday
opi.net poll Has the Omicron variant slowed down a return to the office in your region?
11%
Fellowes makes Forbes list again For a second consecutive year, Fellowes Brands has been named by Forbes as one of the top 40 mid-sized employers in the US.
4%
85%
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n Yes n No n Not sure
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60%
Mix of ACCO Brands’ 2021 sales from the consumer and technology categories
PICTURE OF THE MONTH As part of its Defy Logic brand campaign, technology products supplier Logitech has teamed up with a number of influential ‘disruptors’, including pop icon Lizzo. The campaign has a strong diversity, inclusion and sustainability slant aimed at reaching new generations.
BIG INTERVIEW
With French
FLAIR
Under Nicolas Potier’s stewardship during the past 12 years, France-based reseller Bruneau has more than doubled its top line and become a leading multinational player
A
fter being freed from the shackles of its OTTO/3 Suisses masters in early 2015, Bruneau has had three private equity owners, with the most recent transaction closing at the end of 2021. For many, this revolving ownership door might be a sign of turbulent times but, at Bruneau, it has been just the opposite. Far from being a ‘distressed’ target for investors, the operator has been doing rather well, both on the top and bottom lines. This is due, in no small part, to the steady hand of CEO Nicolas Potier, who has successfully transformed the business from a largely France-focused catalogue reseller into a European B2B e-commerce player. OPI’s Andy Braithwaite caught up with the Frenchman to find out more about Bruneau’s recent acquisitions and how the company has been adapting to changing market conditions.
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OPI: It’s been almost six and a half years since we last had a Big Interview with you. The world has changed since then, hasn’t it, and so has Bruneau. Can you provide an overview of the group today? Nicolas Potier: Yes, we’ve undergone several changes of ownership for a start, as you know. When we last spoke for this feature, we had just been acquired by a private equity company, Weinberg Capital Partners. Now we’re owned by TowerBrook Capital Partners. In between, our main shareholder was Equistone.
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OPI: You are clearly quite popular among these private equity companies. They don’t seem to have any trouble selling and buying you! NP: Well, it requires a lot of effort on the management side of the acquired party, but it’s actually quite common in terms of how these financial institutions
operate. The important point is that the number of employees of the group who are now also shareholders has increased tremendously. A few months from now, around 80% of our employees, or at least two-thirds, will be stakeholders in Bruneau. OPI: Interesting. I saw on the Equistone website that the company referred to the transaction with TowerBrook as a secondary MBO. I was wondering what this meant exactly. What’s the rationale behind having employees participating in the firm – was this instigated by you? NP: Yes, it was. I thought it would be a good idea to involve more of our employees in the future and the financial performance of the whole group. In France in particular – which remains our main business unit – we’ve had a successful profit-sharing scheme for many years. But, in addition, we also wanted to encourage staff to invest some of their own money. This started with approximately 120 managers and now we’re expanding it to everyone who wants to be part of the investment. I believe it’s really important everybody is invested as much as possible in the fate of the group from a financial standpoint.
BIG INTERVIEW Nicolas Potier
I believe it’s really important everybody is invested as much as possible in the fate of the group from a financial standpoint
OPI: Let’s focus on your international expansion for now. Firstly, in Luxembourg and Spain, how have those acquisitions gone for you in terms of their integration? NP: They were very different deals. In Luxembourg, we first became the majority and then the sole shareholder of Muller & Wegener. It’s a very well established and highly regarded brand in Luxembourg, which is a relatively small market. We kept the brand, the management and local business practices as much as possible, but were able to capitalise on the supplier side. Initially, we decided not to integrate the business as regards IT and logistics. Now, we are planning on doing that, at least in terms of the
March 2022
OPI: Talking of financials, can you tell us a bit more about these? NP: The business is currently turning over close to €500 million ($572 million). When we last spoke, I think it was around €300 million. Geographically, we acquired Muller & Wegener in Luxembourg three years ago; we expanded in Spain where we acquired Viking which was integrated into Bruneau Spain; and most recently we purchased Viking and Office Depot in Italy. Therefore, I would say that just under half of the growth of the group has been external with these acquisitions while the rest has been organic. In parallel, we’ve done quite a few things in terms of internal efficiencies and cost reductions – not easy to do – and we’ve also worked with our suppliers to achieve some benefits from this expansion of scale. As such, the profitability of the group has been very solid.
OPI: I saw an article in Les Echos which put your EBITDA at around €70 million. NP: I cannot comment on this. What I can tell you is that our net result – after tax and interest, etc – has been between 5-10% of revenue over the past several years. It’s a very solid performance because it’s really what is left after everything has been paid, and so we can reinvest. It means we have flexibility to look at further external growth if some good opportunities present themselves, and also to invest in our own business – in technology or logistics, for example.
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information system – to be able to digitise and modernise this important part of the company. It will be a significant project to undertake, probably in the second half of this year and going into 2023. OPI: But the Muller & Wegener brand will still be maintained in the future? NP: Yes, because it’s very strong, and we are closely attached to the brand itself and the people working there. OPI: What about the Viking brand in Spain? How attached are you to that? NP: Well, it’s a different type of integration. It’s been more of an absorption and, anyway, we were not allowed to keep the Viking name going forward. We also wanted to focus our energy on one single brand. What we did do is we had a full integration of the information system after a couple of months, which was very quick, and we integrated the logistics into our Bruneau facility near Barcelona. We are lucky to be working with a legacy commercial team there which is efficient and led by an excellent manager. They added some new processes and practices that were ingrained into the Viking model, but weren’t really used at Bruneau at the time. Overall, we have enhanced the way we do business now. It’s working well and has given our Spanish operation the critical size it was missing. To be honest, we have had some challenging times in Spain over the past 10-15 years. With the acquisition, we are now making a profit, which we are happy about, and looking forward to developing this side of Bruneau further.
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OPI: Let’s talk about Italy. It’s a new market for Bruneau, and you acquired two parts from Aurelius – Viking and the Office Depot contract piece. What attracted you to both entities? NP: First of all, the Italian market as a whole was of interest to us. It’s close to France geographically and culturally, and is a large country with a big economy. It has been struggling lately, but I do believe Italy has a lot of potential from a general economic standpoint. When we looked at this opportunity, we knew the integration would present some challenges. Yet, at the same time, we saw that, among all the business units of Office Depot in Europe, it was probably one of the healthiest from a performance
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perspective. It also had a strong team which has been working fairly independently from all the different [Office Depot Europe] reorganisations taking place in Central Europe. The complexity lies in the fact that it is split between two brands – Viking and Office Depot – with very different business models: catalogue and internet for Viking, without salespeople in the field; and Office Depot, with contracts and a lot of outside reps. There were also two IT systems. OPI: Viking is closer to Bruneau’s historical model. Would it not have been practical to just acquire the Viking part? NP: Splitting the business was too complex because all the back office functions were shared: logistics, purchasing, customer service – you name it. We therefore decided to acquire the whole company and are currently in the process of implementing our IT platform there.
We have had some challenging times in Spain over the past 10-15 years. With the acquisition, we are now making a profit OPI: How is that going? NP: It has required a lot of work and effort from the teams in France and Italy, but we are confident we will switch to our system over the course of 2022. OPI: For both Viking and Office Depot? NP: Yes. What we have in mind is that we will gradually be able to implement the business model we have in France and Belgium, which is very much digitised. Just to give you a number, about 90% of our sales are generated through the internet. In Italy, it’s about 60%. But more than that, what we have been able to develop in our business units is what I call a hybrid model. It’s predominantly digital from a transactional and web shop standpoint, with open pricing and so on. And we have combined that – successfully, I believe – with our inside and field sales teams. It’s a stronger web marketing and even paper catalogue approach, together with a complementary sales team for the larger accounts. This is something we want to implement in Italy as well. We are not certain yet what the
BIG INTERVIEW Nicolas Potier
model will look like exactly, to be frank, but this is the objective we are pursuing. However, the first priority was the change of the IT platform, because this structures the overall operation. OPI: How many people do you have in Italy? NP: We have approximately 120 employees, but also a lot of independent sales agents. OPI: I was going to ask you about the sales function in Italy, which is perhaps a little different from other markets. How do you approach this part of the business? NP: The agents are very dynamic. In fact, they were hugely successful at coping with the pandemic and were able to sell quite a lot of ‘beyond office supplies’ products. We want to continue with this commercial spirit and dynamism. At the same time, we want to find a specific Italian model – similar, possibly, to what we have in France, but tailored for the local market. OPI: What about the branding in Italy? Anything you can say? NP: Not yet, but we will not continue with Viking and Office Depot, I can say this much. We will probably have to change it in 2023. OPI: Was this part of the agreement when you acquired the businesses? NP: Yes. And we are still discussing and reflecting on how to go about the branding in Italy. We will probably aim to have only one brand, and that could well be Bruneau, but we haven’t made a final decision yet. OPI: What are your plans for further future international expansion and growth? NP: We are very agnostic in terms of external growth. Firstly, we’re looking at successfully consolidating our acquisitions, which is quite work-intensive for a group of our size. I think people often underestimate the challenges of an integration, and this can lead to failure – we have seen a fair few examples of it in our industry. I don’t want to make the same mistake, so we’ll take the time and effort required to do it properly. Regarding the future, we are constantly evaluating opportunities, both for office supplies and other categories. We don’t want to increase our exposure too much in the traditional office
space. Therefore, in markets where we already have a presence, we aim to be very selective. What I’m saying is any acquisition would have to be fairly easy to integrate and must deliver quite a lot of synergies. Other than that, our plans are fairly broad in terms of expanding product ranges and going beyond office supplies. Geographically-speaking, we don’t want to stray too far away from France. OPI: In the past couple of years, you’ve had to deal with the COVID crisis, changes to people’s working habits, continued digitisation of the workplace and ongoing or accelerated secular declines in some of the traditional categories. It’s quite a lot, all happening at the same time – how would you summarise the experience? NP: It’s been a very bumpy ride because of COVID, but at the end of the day – and I hope we are through it now – I believe it’s been positive. Why? Because we’ve been agile in adapting our offering, for example. Like many other resellers, we’ve been quite successful in expanding our range of COVID-related items and providing people with products that help them when working away from the office, whether it’s from home or anywhere else. As such, we have been able to compensate for some declines in the market in 2021 for traditional OP, including ink and so on. In 2020, there wasn’t actually a decrease because a lot of people were starting to work from home and they needed office supplies. So overall, it’s been a mixed experience but the good thing is that we’ve been able to expand our business offering.
OPI: But continuing to decline? NP: Not really, because we’ve been able to probably increase our market share in those
March 2022
OPI: When you look at your product mix in terms of what we call traditional stationery, ink and paper, what do they represent now? NP: About 55-60% across all our markets.
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Nicolas Potier BIG INTERVIEW
NP: For as long as the feedback from customers shows there is a need for one. OPI: But digital channels will ultimately gain the upper hand and replace them? NP: I’m a strong believer in an omnichannel business model. We reach customers through catalogues, email, our salespeople and, of course, they can access our website. We are just multiplying the number of possibilities. It’s also not one or the other channel, which is actually quite important. The same customers can have different attitudes towards how they want to interact with Bruneau, depending on what they want to buy, their mood, their location, etc.
categories. But I don’t believe we should look at the future of the group only focusing on these segments, because there is a secular decline, no question about it. OPI: I would like to elaborate a little on the hybrid and homeworking phenomenon we’ve seen – and continue to see. How are you set up to deliver to home addresses? I know it’s been an issue in some countries. NP: We have no problem with it. It’s something we have been doing for a long time. We have a large customer base of very small companies. In that sense, we really operate like a B2C business. We have an IT system which can accommodate homeworkers, for instance, who benefit from the same conditions as if they were based in the office. The company gets a single invoice at the end of the month.
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OPI: That’s good, because we hear a lot about spend leakage and employees buying their various supplies online and then expensing them. It sounds like you have it covered. To what extent do you believe COVID has accelerated e-commerce? NP: Hugely. We were already fairly high in terms of percentages, but the proportion of sales to the web has increased, and the need for paper catalogues is probably decreasing.
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OPI: I was going to ask you about catalogues… NP: Bruneau is still producing them. Not as many as we used to and with a lower circulation, but we are still very keen to provide the market with an extensive and comprehensive catalogue. OPI: How long do you think you will keep printing a paper catalogue?
OPI: We’re living in a highly inflationary environment now. How does that impact your ability to pass increases onto customers? NP: This is currently the biggest challenge we are facing; it’s a very serious situation. We don’t dispute the fact there have been a lot of raw material price increases – the evidence is everywhere. And, of course, we’re having discussions with the manufacturers because they want to pass on these rises. I completely understand that. However, for us to be able to manage this with our own customers, it is absolutely key to have maximum transparency from the vendors in terms of their cost structure for the products we buy. It’s extremely difficult to have these conversations, but we need to have them to understand the impact of this raw material – or energy or transportation – cost hike, so we can justify price rises to our clients. They are very upset about the increases we have had to put in place – we have raised prices quite a lot. OPI: You sound a bit sceptical about some of these vendor increases. NP: I’m not. But what I would hate is being in a situation where there’s so much turmoil in the market that some of the vendors might try to take advantage of it and improve their margins. Transparency with us is so vital. Discussions would be more efficient and less time-consuming, and we would be much more understanding of the increases they have to pass on. It would also be better in terms of the longer-term relationship with us because, at the moment, we often get a very sketchy type of explanation. OPI: A difficult time for supplier relations then? NP: Yes. Our role as a reseller is to develop the market, and also to protect our customers from the economic consequences of the current increases. We have a duty to them in terms of being reasonable on price, and sometimes what we’re seeing at the moment seems unreasonable. We are not dealing with one-off partners here. Bruneau has established, long-term relationships with manufacturers and, as such, we need to discuss and negotiate this kind of situation in a much more open book type of way. This is my message to my teams over and over again.
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OPI: Hopefully you can have some fruitful discussions with your suppliers at the OPI Partnership event in March! Let’s move on to something else. Looking at the French market in particular, Office Depot obviously had its problems last year. Did you manage to pick up some share from this situation? NP: I think so, and our competitors probably did as well. I feel sorry for the people who worked for the company but I think, at the end of the day, it wasn’t a very well-managed integration. It’s exactly what I referred to earlier and what I don’t want to do at Bruneau when acquiring companies. OPI: When you look at the general health of the French business supplies market, how would you describe it? NP: It’s been consolidating over the years. In my time in this business, I’ve seen quite a few players disappear, the latest ones being Office Depot Business Solutions and Viking. But there were others beforehand. The ones that are still around are, as far as I can see, fairly healthy. OPI: Is it a market ripe for more consolidation? NP: I don’t really think so, but we’ll see. OPI: It seems that the main French players have now become the powerhouses of the European office supplies market. NP: You’re talking about Lyreco and RAJA? OPI: Yes, and the likes of Manutan. NP: These three players you refer to are very solid groups. We are trying to be solid as well. OPI: Well, you certainly look like you’re doing a good job. What’s keeping you awake at night? NP: This issue with inflation is worrying me a lot.
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OPI: Some things you cannot control. Where do you draw the line? NP: It’s about the way we, other players and the manufacturers react to what’s happening, because it’s unprecedented. I started my career in 1991 – I’ve never seen such an inflationary period and I don’t think the majority of the decision-makers in our industry have either. Whether it continues, we enter a spiral of more inflation and wages going up, thereby fuelling even more inflation, I don’t know. But it would be a big challenge if that happened.
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OPI: Does it put you under constant pressure to reduce your overheads and costs? NP: Of course. But we are stuck between a rock and a hard place – between suppliers pushing up prices and customers that do not understand increases of this magnitude. It’s the major concern I have. OPI: You’ve been with Bruneau since 2010. What’s your vision for your own future? NP: 12 years ago I would not have predicted that I would still be managing the group in 2022! I had no knowledge of the office supplies industry, nor of B2B reselling. I had studied to become an engineer and worked for companies like Air Liquide and General Electric, so nothing to do with this market. But it’s been a good ride. When I joined to manage Bruneau France, it was part of a bigger group – 3 Suisses – which was not doing well. It was a difficult time; we were a business unit in a larger organisation, but we were believed to be something of a sleeping beauty…
We are stuck between a rock and a hard place – between suppliers pushing up prices and customers that do not understand increases of this magnitude OPI: Which makes you the Prince Charming. NP: (laughs) I don’t know about that. But 12 years on and our growth has been fairly substantial and the results are much better. We’ve been able to regain our independence and our employees are proud to be part of the Bruneau story – now also with a sense of ownership and having some skin in the game. I think this dynamism and the entrepreneurship of our people is the key to the success we’ve been able to build. I hope we will be able to continue in the same vein and move in the right direction over the course of the next 12 years. OPI: Well, good luck with that, and thank you very much for doing this interview.
FOCUS From the outset, the coming together of Thrasio and IdeaStream seems like David succumbing to Goliath. Looking closer, however, this is far from an uneven match
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n September of last year, IdeaStream Consumer Products was acquired by Thrasio. Regarded as the original Amazon aggregator, Thrasio is known for first identifying and then buying top-performing brands on Amazon. Combining its e-commerce expertise with deep pockets, the company then drives those brands to greater levels of volume and reach on the online giant’s platform, thereby boosting both revenues and profits. While the narrative of Thrasio buying ‘one of our own’ – clearly seeing its potential in the online space – is interesting in itself, it’s perhaps even more relevant for our readers to learn that the IdeaStream deal marked something of a departure from Thrasio’s typical approach. It provides the aggregator with a pathway into the traditional B2B wholesale and retail space. OPI’s Heike Dieckmann recently spoke to IdeaStream’s CEO Tony DeCarlo to find out what each entity is seeking from their coming together and what both can bring to the party.
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OPI: Before we get into the strategy side of your acquisition by Thrasio, please tell me a bit about IdeaStream. Tony DeCarlo: Sure. IdeaStream was created in 2002 by me and Dan Perella. We had previously both worked for office products manufacturers in our sector.
Our business was founded on what we call the principles of category management. We believe that the panning for gold starts with capturing and analysing daily transactional point-of-sale information from our customers – retailers, OP resellers, superstores and wholesalers, for example – to identify opportunities to grow. Units sold per store per week, seasonal buys – it’s all essential for planning demand, spotting trends, optimising the supply chain and simply making sure our merchants and the buyers we work with have the right amount of inventory in the right locations at the right time. Only it’s not simple at all, but very complex. OPI: But you’re not a manufacturer, are you? TD: That’s correct. I would describe us as a consumer products company which leverages third party resources for certain functions. So we don’t manufacture ourselves, but we own substantial intellectual property – patents, trademarks, etc – around the products we market. And the items we sell are exclusive to us. Some people regard us as a sourcing company, but I believe that’s too limiting. Anybody can think of a product and look for a manufacturer somewhere around the globe to make it for them. We do more. We identify category opportunities, invest in the design and development of the products, and vet them all
OPI: Vaultz is an IdeaStream brand that springs to mind and which I remember from Paperworld many years ago. TD: Yes, Vaultz is our flagship brand and the first one we launched in 2004. We have two other IdeaStream brands. One is called Snap-N-Store and the other Find It. Broadly speaking, these ranges comprise filing, organisational and storage products. OPI: Where is your geographic focus and what’s your route to market? TD: The majority of our business is in North America right now. If you look at the top 20 retailers there, we are selling to 17 of them, plus we go to the B2B business supplies reseller community, predominantly via the two OP wholesalers. And, of course, Amazon is a sizeable part of our operation. OPI: When you say “right now”, I’m guessing your outlook has broadened with the Thrasio deal, so let’s talk about your acquirer a bit more. My understanding of Thrasio is that it buys Amazon FBA businesses, adds expertise and resources, in the process growing volume. It’s a simplistic description, I realise, but am I in the right ballpark at least? TD: That’s pretty spot-on as a nutshell description and it’s definitely how the company started out. Thrasio has raised significant capital since its creation in 2018 – the latest round in 2021 amounted to $1 billion – and has built a portfolio of more than 200 brands and thousands of products. Its valuation is somewhere between $5 and $10 billion and most of this volume sits on Amazon. What this operator has effectively done through this huge range of acquisitions is build a next-generation consumer goods company. By buying these brands, it’s added quality products to its portfolio. But these entities already had established viability, a determined product market fit and a built customer base. The next step was to grow them. Thrasio – and that includes us now – defines its mission as “reimagining how the world’s most-loved products become accessible to
everyone”. It means our really successful items and brands need to be available to consumers wherever they shop. Amazon may appeal to 20% of the global consumer products market, but the remaining 80% still represent a huge opportunity. That’s where IdeaStream comes in. Our business prior to the acquisition was 80% wholesale and retail, with 20% Amazon, so we have a lot of expertise to offer in what you might call the more traditional channels of distribution, including business supplies.
FOCUS Thrasio
the way down to the consumer level to make sure we’re absolutely on the mark.
Amazon may appeal to 20% of the global consumer products market, but the remaining 80% still represent a huge opportunity OPI: So the idea is not just to increase the portfolio or the presence of IdeaStream products, but also that of all these other brands Thrasio owns – and no doubt will continue to buy. TD: Precisely. It’s multifold. Of course we want to grow the legacy brands of IdeaStream in all channels. Amazon is one of these channels for us. We actually thought ourselves to be competent on the digital marketing side of our brands but, compared to Thrasio, we’re neophytes. There’s immediate potential for Thrasio to take the success we’ve had on Amazon, broaden it and more aggressively grow this portion of the business. And that’s happening very effectively already. It’s to do with access to resources around the globe we may otherwise not have been able to reach, supply chain solutions, scale in negotiations and so on – it’s a long list. The second opportunity is to leverage the IdeaStream infrastructure as a platform to launch these successful Amazon-only brands into traditional channels. This is really where the IdeaStream acquisition was unusual for Thrasio in that our whole team has joined theirs. Thirdly – and you’ve already alluded to it – Thrasio will continue to strategically identify brands and companies that can be acquired and are truly accretive in nature.
IdeaStream’s organisational products
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Thrasio FOCUS
OPI: Where do you see the best expansion opportunities specifically for IdeaStream? TD: Right now, we’re negotiating the distribution of certain categories in the EU, Australia and New Zealand. Thrasio has also recently acquired a major business in India, so that’s another market we’ll be looking at, both in terms of selling as well as a production and sourcing opportunity. But the real focus will be on delivering as a platform to help Thrasio build an omnichannel presence for our entire portfolio of brands. OPI: Back to the US, Thrasio is based in Boston, Massachusetts, while you’re in Cleveland, Ohio. How will that evolve? TD: Certainly for the time being, we will continue to operate out of our offices in Cleveland and we’ll be the competency centre for the offline channel for our parent. OPI: What’s been the feedback from this offline channel to the new influx of Thrasio brands? It’s obviously early days still. TD: Our core customers have been very receptive to the idea of us bringing them brands that are really successful in the world of Amazon, but don’t yet have a home in traditional retail or wholesale. We are talking about brands with hundreds of thousands of five-star reviews and which are leaders in massive categories. The end consumer has already voted on these products in the digital world, but we’re now talking to our customers, urging them to put them on their shelves – wherever those shelves are. I think there’s a huge appetite for these successful items to have a presence outside the Amazon platform.
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OPI: Are the brands you are talking about competitive to the dominant manufacturers in our space – I’m sure you know which ones I’m referring to? TD: Some are, others aren’t. Of course you have some brands on the shelves of Walmart and Target and in the warehouses of Essendant and S.P. Richards which own the category in the traditional channel, but amazingly have become a distant second or third on Amazon. They are working hard to improve that standing. But we are also working hard to ensure Amazon-only brands find their way to the end user via all channels.
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OPI: What’s your ambition specifically from an IdeaStream perspective? TD: Scale. And Thrasio brings this at a level we simply couldn’t achieve on our own. We live in some pretty challenging economic times and in a drastically changing marketplace – scale is crucially important in all aspects of our business, from access to production partners, to management of the supply chain, and then just overall marketing power. We offer a platform for delivering successful Amazon products back into traditional channels and Thrasio gives us access to resources to just be bigger, stronger and better.
Tony DeCarlo
OPI: How autonomous do you expect to be under the Thrasio umbrella? TD: As I said, our business is different from Thrasio’s typical acquisition target because of the channels we serve and the expertise we bring in that context, so autonomy isn’t the goal. I thought we were good at Amazon, but Thrasio is great. We have seen first-hand the power of Thrasio in the world of digital marketing and sales. It’s comparing a black belt with an orange belt. But, by the same token, we consider ourselves to be very competent at serving traditional retail and wholesale – that’s why it’s such a good partnership.
Our core customers have been very receptive to the idea of us bringing them brands that are really successful in the world of Amazon, but don’t yet have a home in traditional retail or wholesale OPI: No conversation at this point is complete without mentioning COVID. Thrasio launched about 18 months before the pandemic hit, clearly spotting a silver bullet as an Amazon aggregator. It’s surely turned into a golden opportunity over the past three years. TD: There’s no doubt Thrasio was way ahead of the curve. To have the foresight to create a business like that was already pretty incredible. To then have the world change in a way that aligns it more strongly with its direction is amazing. The global pandemic has been an incredible tragedy in both personal and business terms. It’s likely many companies won’t weather the storm, not least because of the severity of the supply chain challenges we’re seeing right now. We are extremely lucky to have the leverage that comes with being part of the Thrasio stable.
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Thrasio FOCUS
OPI: While the Amazon opportunity has undoubtedly been great – and continues to be so – we also often see anxiety about putting all eggs into the Amazon basket. It’s come back to haunt many operators, so spreading your distribution out sounds like a solid plan. TD: We were not exempt from that angst, I can tell you. Amazon is influential and of vital importance to so many sellers. It means the decisions this player makes echo throughout commerce. We certainly had our own challenges with this in 2019 when Amazon changed revenue thresholds for Vendor Central sellers. It was painful, but we came out the other side with significantly better margins and a rapidly growing business. Amazon is one of the great wealth creators of our time. The potential for sellers and for companies like Thrasio is enormous, and we think it will continue to grow. All that said, you’re absolutely right – diversification is just smart business and Thrasio’s interest in IdeaStream came at a perfect time.
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OPI: How did it actually happen? TD: It’s an interesting story. We received a solicitation postcard in September 2020, asking “Are you interested in selling your Amazon FBA business?” My business partner, Dan Perella, put the card on my desk and said: “Hey, check this out. Is this something we should look into?” I didn’t even know what an Amazon aggregator was back then. I did a bit of research and responded to the postcard with a phone call to the VP of Acquisitions, a gentleman called Ken Kubec, who happened to be from my hometown of Cleveland and a graduate of one of the local high schools. We had a good conversation, but I said we were not for sale. However, I was interested in the model and Thrasio was interested in us because the team had seen the success of some of our brands on Amazon and wanted to learn more. So we signed an NDA and started to openly share information about our businesses. But at the time Thrasio wasn’t focused on brands with a sizeable wholesale or traditional retail component – our stronghold – and we parted ways. We reconnected in February 2021 and Ken shared with me that discussions within Thrasio
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THRASIO FAST FACTS Founded: 2018 Headquarters: Boston (MA), US Co-founder & CEO: Carlos Cashman Staff: 1,000+ Sales: $1 billion+ Brands bought: 200+ Geographic coverage: US, UK, Germany, China, Japan, India
were starting to focus on the importance of omnichannel distribution. The initial idea was to sell two of our brands – not our company. But as we got into the due diligence, it became evident that maybe, as valuable as our brands were, perhaps there was even more value in our infrastructure, knowledge and relationships because we served channels and customers Thrasio did not. We came to the mutual conclusion an acquisition of the entire company – IdeaStream team and all – was more interesting than a brand sale. So this relationship that started via a postcard on 15 September 2020 went full circle on 10 September 2021 when we signed the deal. OPI: How do you think a player like Thrasio will shake up the business supplies sector? TD: These aggregators or, perhaps better put, consumer products companies could offer a viable opportunity for some of the smaller manufacturers. They allow operators like us to compete at a different level because of scale. Their sole focus is to build brands and they do it very well. I believe there could be some potential for entrepreneurs who have been slugging away at it for a long time – they can put themselves in a better position to weather the storm of change that we’re all experiencing. It could also be a good exit strategy.
Operators need to constantly challenge themselves to become significantly better today than they were yesterday We all know Amazon has changed how the world shops forever and it will continue to do so. As such, it’s certainly challenging the traditional business model, but it’s by no means replacing it. And I would definitely say operators need to constantly challenge themselves to become significantly better today than they were yesterday. We have to embrace this evolving landscape, pay close attention to how companies succeed on Amazon and make changes in our businesses that allow us to participate.
CATEGORY UPDATE
Special Issue HEALTH & WELL-BEING
The wellness
FACTOR
Special Issue
VENDOR SPECIAL
Opportunities abound in the health and well-being category as companies are trying to woo their staff back to the office – by Michelle Sturman
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he workplace wellness category was growing at a reasonable pace of around 5% pre-COVID, according to research and education resource, the Global Wellness Institute (GWI). Growth fell by 7% when the pandemic entered the picture but, as offices are now finally beginning to welcome back staff, GWI projects an annual rise of 3.8% to reach $58.4 billion in 2025. Digging deeper into December 2021 data from The Global Wellness Economy: Looking Beyond COVID report, GWI reveals that much of the spend on workplace wellness is motivated by business owners’ desires to lower healthcare costs; improve morale, retention and recruitment; and increase productivity and competitiveness. The research firm believes that companies are realising a “compartmentalised, programmatic approach is not particularly effective”. The report says: “The sudden and dramatic shift to remote work has also challenged long-held assumptions about what wellness means in the work context. Some employers are beginning to adopt a more holistic approach that encompasses company culture, hierarchy, leadership style, workflow, built environment, etc.”
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BE SENSITIVE As the emphasis shifts towards a return to the office, Darren Hilliker, Architecture and Design Manager of UK-based workplace connectivity and ergonomic solutions vendor CMD, warns: “Employers will need to be sensitive to everything people have been through over the past two
years and the lasting effects the experience may have on their well-being.” Durable Managing Director Rolf Schifferens believes the coronavirus crisis has most certainly changed how health and well-being is perceived. “The focus in recent months has been on hygiene, along with social distancing, technology for hybrid working and meaningful signage,” he says. Research undertaken as part of the Gensler US Workplace Survey Winter 2021 substantiates this view. Respondents stated they would be more comfortable going back to the office if the following were implemented: indoor air filtration systems (80%), enhanced cleaning protocols (76%), access to more private spaces (74%), operable windows (65%), vaccine requirements (65%) and outdoor workspaces (61%). Speaking to OPI, a Fellowes Brands spokesperson confirms: “Prior to the pandemic, it was rare to see HEPA grade filtration outside of specific healthcare settings. Now we are observing widespread adoption of air purifiers in shared areas. Additionally, cleaning and disinfection activities were often ‘out of sight, out of mind’, but efforts are currently being made to reassure staff and the public they are in a safe space. “According to a study published by the Cleaning Coalition of America, 66% of US employees want better hygiene and jan/san practices before returning to work. People have always assumed that their offices and the air they breathe within them are clean, but today they want confirmation and are explicitly asking what is being done.”
This unease extends to all areas of the working environment, including the washroom, where hygiene was already a major concern pre-COVID. While apprehension about visiting public facilities has fallen over the past year or so, users nevertheless still consider toilet seats, lids and flush handles to be unhygienic, as reported in the Dyson Washroom Attitudes Survey 2021. Results for the UK, for example, reveal unclean toilets are the biggest frustration (59%), followed by lack of toilet paper (49%), blocked toilets (41%) and no soap (35%). There’s also hesitation over hand dryers, with 40% concerned about having to press physical buttons and 34% worried about the dryers not being cleaned enough. While these aspects remain a worry, Schifferens believes the task now is to create good arguments for working at a company’s premises again. “If businesses succeed, through clever solutions, to make working on-site pleasant, team-orientated and agile, it will be easier to motivate employees to come back to the office. A well-equipped workplace is pretty much standard today, so ideas are needed to generate added value for staff.”
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VENDOR SPECIAL
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MORE POSSIBILITIES And some interesting opportunities exist. Robin Bayliss, Group Sales Director at office furniture manufacturer Bisley, says: “Lockers have become a real focus for organisations seeking to provide their employees with secure spaces for personal belongings, as they look to maintain cleaner, more hygienic and streamlined workspaces post-pandemic.
Employers will need to be sensitive to everything people have been through over the past two years
Bisley LockerWall
“This is especially relevant for companies that are adopting hybrid working practices, clean desk policies, or where shift patterns have been introduced to manage employee footfall. “Naturally, the 2022 locker is altogether different from the kind of locker you’ll find at your local leisure centre. For a start, the aesthetics
are next level, but these new-gen lockers have also got the capacity to have some serious tech installed, much of which reduces the amount of touching required – a definite bonus when it comes to hygiene. “Importantly, the technology helps to enable a workforce to operate in a hybrid way. Take wireless smart locks as an example. The latest smart locking technology allows management to remotely assign and manage users, schedule auto lock/unlock and receive instant alarm alerts.”
March 2022
BREAKROOM BOOSTER One category that has been pretty much jettisoned throughout the pandemic is the breakroom – because of the lack of office occupancy in the first place and the work-from-home (WFH) situation, but also as a result of restricted access to kitchen facilities and common areas. However, leaders in this field have worked hard on resolving hygiene issues and creating new possibilities within the realm of health and well-being in the workplace. As Patricia Hohlfeld, Senior Director Field & Account Sales at Nestlé Professional, explains: “Recognising that people need to feel safe and have all the protocols, policies and installations necessary in place to make this happen is absolutely paramount. It extends to office coffee corners, cafeterias, breakrooms – the entire facility. We work with our customers to solve safety concerns and add healthy, single-serve, minimal-touch products for workstations as well as WFH packages.” Florence Pompeu, Senior Associate Brand Marketing at the company, adds: “Recent innovation is driven by a few interesting things we see emerging and accelerating, related to wellness. The first is continued interest in personalisation to fit the diet that individuals feel is right for them. While this has been a trend for a number of years now, we’re observing even more interest from consumers in trying different diets and proactively managing their health wherever they are, including in the office. In large part, it has inspired our new plant-based and sugar-free creamers from Coffee-mate. “There’s also been an incredible focus on emotional well-being and mental health, and businesses collectively recognise the importance of bringing employees together virtually, on-site and in hybrid environments. “One last opportunity we see accelerating is around sustainability. On the surface, it may not seem like a health and wellness topic, but consumers show increasing interest in solutions that are ‘good for me,’ ‘good for the community,’ and ‘good for the planet’.” Suzanne Cohen, Marketing Director, Away from Home at Lavazza Group BU Americas, agrees: “Some companies limit numbers in a cafeteria, breakroom or bathroom at one time. In the breakroom, some employers have switched to recyclable cups and utensils. This reduces the risk of germ exposure from shared items and helps prevent sink backups.
CATEGORY UPDATE Health and Well-being
Special Issue HEALTH & WELL-BEING
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Health and Well-being CATEGORY UPDATE
“As companies are trying to get staff back to the office a few days a week, many managers are looking to upgrade their coffee systems and beverage offerings as these are considered a form of appreciation and motivation. “Today, people are drawn to healthier beverage options such as functional teas and vitamin-infused waters. Interestingly, a recent research study reveals that Gen Z consumes ready-to-drink versions more frequently than brewed coffee and pods.”
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When managing a hybrid/hot-desking model, it is imperative to consider employee health and safey
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GOING THE EXTRA MILE Some surprising facts regarding dietary habits have also emerged in The Third Annual State of Snacking by Mondelez International. According to the 2021 study, as consumers’ lives have changed over the past couple of years, they are now equating snacks with well-being: 80% are looking for snacks to improve physical health, 80% for emotional health, 75% for mental health, and 65% for social health. In addition, there is rising interest in functional snacks, ie immunity-boosting ones or those rich in vitamins. Snackers are further seeking information on packaging as regards mindful snacking tips, health indicators such as the traffic light system, and visual guides to portion sizes. Professional services firm JLL corroborates these sentiments. Its Regenerative Workplace: Restoring Employee Wellbeing to Achieve Sustainable Performance report reveals employees are looking to their employers to foster a people-centric work environment that supports mental, social and physical well-being. Relaxation and outdoor areas, and healthy food services top the list of must-haves. Yet only 17% of respondents currently enjoy access to
relaxation places, while 19% have healthy food services available to them and 25% the option of outdoor spaces. Further, with 33% of the workforce lacking access to any health amenities today, JLL believes there’s a golden opportunity for employers to address this need by offering well-being solutions. These could include conducting nutrition workshops, providing bike storage to promote exercise, offering mediation resources or making nutritious food options available. MAKING A MOVE Over and above implementing these new kinds of elements, the perennial task of keeping employees physically well still constitutes a crucial part of any well-being programme. Ergonomics is a big topic in this context. It’s increasingly important in a hybrid working world and will play an even greater part in the return to the office. Says CMD’s Hilliker: “For premises with a hot-desking set-up, there is also the emotional impact of no longer occupying a designated, personal space. It will suit some personalities better than others. As with any transition, there will be those who need support. “The other challenge with hot-desking environments is that there is no one-size-fits-all ergonomic workstation. Everyone is different, and how they work varies depending on their role, so the key criterion for selecting furniture for this environment is adjustability.” Fellowes Brands’ spokesperson concurs: “When managing a hybrid/hot-desking model, it is imperative to consider employee health and safety. The risk of injury can be higher for hybrid workers than for those who work only in the office as a result of home/remote workstation designs that may not support the body or meet ergonomic best practices.” “With social distancing in mind, we need to find a happy medium between safety and working within an existing footprint. Businesses should revisit office layouts to ensure enough
Health and Well-being CATEGORY UPDATE
space between desk configurations for people’s well-being while at the same time enabling collaboration to occur naturally. “Staff may prefer to have a designated desk to feel sure it is clean, with space to focus on the tasks at hand. Ensuring their ergonomic equipment needs are met will be key, especially if they have been absent from the office for some time.” Offering a comprehensive range of ergonomic equipment provides numerous health benefits, says Floortex Marketing Manager John Barker: “Standing and height-adjustable desks have boomed over the past five years. It’s obviously great that businesses are investing in these desks for employees, but the true benefits will only be seen if supported by ergonomic accessories. “Spending a little on the extras maximises employee benefits and, by definition, gives the best performance payback to the business. Once in the habit of using ergonomic accessories, it becomes second nature and has a significant effect on physical well-being as well as helping with concentration and productivity.” Prospects will continue to exist in the homeworking environment too, as Barker notes. For example, Floortex has seen “huge growth” during the pandemic for its range of chair mats.
Your body was built to move and we think it’s time your workspace did the same
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“Most employees have little concern about worn flooring under their chair while in the workplace, but in their home it’s a different matter. Together with the easy-glide ergonomic benefits, homeworkers have really engaged with chair mats, and they are now seen as a key part of the home office solution.” Lori Lockwood, Marketing Manager at Safco Products, is passionate about the importance of ergonomics as a fundamental part of well-being: “Your body was built to move and we think it’s time your workspace did the same. By pushing the limits of modern furniture and challenging the assumption that sitting behind a desk all day is the only way to work, having the right ergonomic options allow everyone to become more active during their day. “You can offer a dynamic workspace by building a movement-rich environment. Creating small changes can add up to employees being more focused and productive.”
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GETTING COMFORTABLE The post-pandemic office must also encompass elements that, until recently, sat on the periphery of workplace wellness. As Durable’s Schifferens stresses, employees want to feel comfortable and valued wherever they are based. Therefore, a desirable environment should include a great indoor climate, good lighting and a whole raft of home comforts which could easily be transferred to the workspace.
Indeed, according to GWI, these features are currently being prioritised over pre-pandemic trend requirements like food bars, sleep pods and social/play spaces. That said, Bisley’s Bayliss offers an alternative view on pod popularity, particularly with a post-COVID world of work in mind: “Pods are not a new concept in modern office design, and their use was on the rise pre-pandemic. We have recently seen huge demand for our Vetrospace pods which incorporate health technology, including antimicrobial lighting, antiviral nano-coating and clean air ventilation. They leave no room for bacteria, poor air quality or noise distraction. Additionally, their glass walls mean workers feel both part of the office environment and separate from it when required.” Juggling all these requirements and finding a work-life balance for staff is definitely a challenge. Employers will have to significantly up their game to retain valuable employees and attract new talent. Steelcase sums it up in its Changing Expectations and the Future of Work study where it urges companies to do a “better job at inspiring people and building a strong community”. The workplace, it says, “will have to provide the touches of humanity and warmth people are seeking to counter safety precautions organisations have needed to deploy”.
TIPS FOR GOOD DESK-BASED ERGONOMICS l
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For an ergonomic sitting position, your elbows and knees should be at a 90º angle. Keep your monitor, keyboard and chair in a straight line to avoid twisting your spine. The top of the screen should be exactly at eye level. For individual adjustment, screens should be able to rotate and tilt. You should be looking slightly down at the monitor. This relieves strain on the neck muscles, closes the eyelids slightly and helps to reduce eye drying. Side lighting is best, so set up your workstation parallel to the window. A mix of indirect and direct light sources with neutral white or daylight white workplace lamps is ideal. The eye-monitor distance should be one arm’s length (50-80 cm). Plants in the workspace humidify the air and prevent the surface of the eye from drying out. Using two monitors boosts efficiency and reduces errors. You can turn a tablet into a second standing monitor using a mount.
Source: Durable
OPINION
Glass
Special Issue HEALTH & WELL-BEING
HALF FULL or HALF EMPTY?
Special Issue
COVID-19 has brought the topic of health and well-being to the forefront like never before. But rather than distinguishing between work and play or young and old, the notion of wellness is all about striking a balance, says Lyreco Germany’s Falko Köhler
T
he origin of happiness is one of the most personal and individual things to contemplate and discover. And often, there is a deep interdependency between the personal, social and work setting. Over the past ten years, I’ve had the opportunity to experience a couple of entirely diverse working universes and cultures. I started my career in professional sports and then joined Lyreco. All the while, my social environment remained pretty much the same. For me, and with this background in mind, there are two major points when it comes to well-being:
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• There is no silver bullet to achieving a mindset of true ‘well-being’. • Even though it is most definitely a balancing exercise, it’s not about private versus working life, mental versus physical health, etc. Instead, it’s more about deciding what you like to do and what you don’t like to do. The aim should be to reach a state of mind where there’s more on the “I like” than on the “I don’t like” side, and to build up resilience to overcome negative events more easily and focus on the good stuff in life.
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My current remit is to establish a new dimension of the customer experience for Lyreco Germany and set a benchmark for the industry. The team around me is vital in this task and I see it as part of my job to make this team successful. After all, it’s much easier to succeed when you’re happy.
LEADERSHIP RESPONSIBILITIES Broadly speaking, it is up to an organisation’s leadership to create the framework for a positive working culture. Two key elements are crucial here in my opinion – among a long list of other things to work on. First, leaders should enable everybody to have a true sense of value creation – for themselves, the team and the company as a whole. Goals are as important as the specific tasks you allocate to individuals to achieve them. Employees need to have a good perception of what they’re doing and strive to achieve goals – it’s absolutely vital. Coming from professional sports, I can guarantee that hours and hours of practice and doing what you love doing are not nearly as satisfying as the tantalising promise of success when you train for long-awaited competitions. At Lyreco specifically, I learned this during the implementation of our global digital transformation initiative. It’s not enough to have people working on cool projects with many fun tasks. At some point, they will start to get tired and frustrated. Devising a clear, long-term strategy with desirable goals and then establishing a connection between individuals and their daily jobs will ensure a positive perception and also generate a lot of resilience for the hurdles ahead. Second, there needs to be a lot of room for personality and emotion, and less focus on some arbitrary distinction between ‘business’ and ‘pleasure’. Again, it’s about likes and dislikes
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and I would argue that much of what is typically regarded as a ‘business need’ as opposed to a ‘private need’ should be banished. Likes and dislikes are not the same every day – they are often influenced by our mood, physical health or even the weather. Diversity in a team can be a real simplifier and I’m specifically referring to generation diversity in this instance. My experience is that the older generation has largely been taught and trained to separate work from play – emotionally and practically. Younger generations, on the other hand, are more open about their feelings – and this includes the work environment. The latter creates room for likes and dislikes, failure and success, frustration and fun, all of which need to be well balanced and also accepted. Diversity – in a broader sense and away from just generational aspects – further helps to generate different views on the same topic. This increases the chances of perceiving opinions from an opportunity, not just a problem, point of view in your team. And, by the way, for me the concept of sharing is the default definition of the word ‘team’. I’ve never understood the narrow-minded interpretation by some companies whereby being part of a team is akin to being pigeonholed to the extent where everyone does ‘the same stuff’. It’s so wrong and in fact quite offensive.
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INDIVIDUAL RESPONSIBILITIES Aside from leadership duties, there are also individual responsibilities in terms of personal health and well-being. Again, I highlight two points that strike me as important. First, take care of yourself: listen to your body, work smartly and sensibly, and be transparent about how you feel. This is how you enable the people around you to support you, guide you and celebrate with you. Second, compensate. After a long week of mental work – having meetings, concepting, workshopping, projecting, etc – you need to switch to something else. For me, this means taking out my bike and going for long rides at the weekend, or going for a night-long board game session with family and friends.
Overall, I apply some basic rules to my day – and I don’t mean only the working day: don’t finish the day with something you don’t like doing, don’t plan out more than 50% of your time, get lots of sleep and go to the office at least once a week. Obviously, the last rule was triggered by the pandemic which, of course, has actually pushed the topic of health and well-being to the forefront in the first place. And it’s easy to see why, just do the math: if you reduce the number of potential activities through restrictions, you will kill some possibilities for compensation. As a result, work feels more stressful. From a personal perspective, my days did not get longer, my work did not get harder and I am still passionate about it. What has changed is that a layer of emotion and personality in meetings, small talk and even projects is missing. This is why I try to see real people at least once a week at the office.
OPINION Falko Köhler
Special Issue HEALTH & WELL-BEING
CREATING A POSITIVE FRAMEWORK Circling back to my introductory remark about the origin of happiness being very individual, I would conclude that everybody likes and dislikes different things depending on many factors. But as a leader, you can set up some mechanisms to help people perceive more things as positive and fewer as negative. It’s something companies can learn from professional sports or even the relationship between a parent and a child – let’s focus on succeeding together in a positive way. And, can I just add: please don’t get the idea of compensation wrong – a bowl of fruit is not making up for anything, certainly not bad working processes and practices. As an individual, meanwhile, you have to take care of yourself and make sure that the glass is half full more often than it is half empty.
As a leader, you can set up some mechanisms to help people perceive more things as positive and fewer as negative
Falko Köhler
March 2022
But the concept of compensation also needs to be realised in daily life. Balance again is the clue. After five days of pasta, you need a salad. After three weekends of family birthdays, you need a weekend to yourself. And after three days of workshops, you need a week of ‘solo focus work’. It’s not rocket science and quite simple: monotony of any kind is unhealthy.
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SPOTLIGHT Special Issue HEALTH & WELL-BEING Special Issue HEALTH & WELL-BEING
Breathe
EASY
Air treatment systems have become a vital component in creating healthy indoor spaces
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t’s not all about removing nasty viruses and bacteria from the air, Special Issue odour control is equally critical in maintaining hygiene in shared
public spheres. OPI’s Michelle Sturman talked to experts from four VENDOR air treatment manufacturers to find out more. SPECIAL
FELLOWES Special IssueBRANDS OPI: How does air ventilation
contribute to health and well-being in VENDOR the workplace/classroom? SPECIAL Fellowes Brands spokesperson: We
take about 22,000 breaths every day and spend 90% of our time indoors. Most of that air is recirculated, containing VOCs, viruses, mould spores, bacteria, asthma, allergy-causing triggers, etc, and can be 2-5 times more polluted than outside air. Without proper ventilation and filtration, we constantly expose ourselves and our children to these harmful contaminants. Poor air quality has been linked to low test scores in classrooms, billions of dollars in lost productivity, lower fertility rates, and even higher mortality instances. Nothing is more fundamental to our health and well-being than clean air. Most of us spend much of our lives in an office or school building. As such, the impact of investing in clean air is immediate and long-lasting. An effective air purification solution can help dramatically reduce the risk of exposure to contaminants.
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OPI: What exactly are ‘smart’ air filtration systems? FB: A smart system means it is constantly sensing the environment through an array of sensors and automatically adjusting the performance based on the conditions, taking any guesswork out of how to set the air filtration system. Air purification models should be designed to be as unintrusive as possible. The most effective smart solutions also look at both air and non-air quality metrics of the room, like occupancy, to ensure the machine is set to the optimum performance level. Smart machines do the work for you, selecting the appropriate settings based on the true dynamic conditions of the area to deliver the best air possible.
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Fellowes Brands AeraMax Pro AeraMax Pro air purifiers are smart air filtration systems designed for shared spaces. Available in a variety of sizes and filter choices, they have patented EnviroSmart and PureView technologies that continuously scan and analyse rooms to purify the air as required. The AeraMax Pro delivers 3-5 air changes per hour, based on room size and shared space, while the True HEPA filtration system removes 99.99% of all airborne contaminants, including viruses. An antimicrobial HEPA treatment prevents bacteria growth on the filter and an activated carbon filter reduces odours and VOCs.
ACCO BRANDS
OPI: How easy are air ventilation systems to install? Marc Brion, Category Manager, ACCO Brands EMEA: Standalone air purifier models, for example, do not involve any specialist installation and can be used as and where required. They are simply connected to the mains, so are truly plug and play. In addition, no ongoing training is necessary as the air purifiers let users know when filters need to be replaced.
OPI: How good are air treatment solutions at eradicating airborne viruses (including COVID), bacteria, etc? Thomas Reinhard, Sales Manager, RENZ: Conventional air filtration systems purify the air of pollutants like viruses, pollen or dust by creating the strongest possible airflow in the room. Since the start of the pandemic, a lot of new air treatment solutions have been developed. For instance, one type works with a combination of ionisation and activated oxygen. Shortly after the machine is switched on, pollutants are eliminated directly at the point of origin through various active principles. This system ensures the air in the space itself acts as a protective barrier and removes all aerosols, particles, viruses and bacteria immediately, with 99% effectiveness. OPI: What is the optimal ventilation in an office or classroom to ensure great air quality? Michael Schubert, Managing Director, RENZ: Air purifiers are great inventions for areas that can’t be ventilated naturally. We recommend coordinated ventilation with the help of a CO2 traffic light. It is one of the most effective ways of protecting students, teachers, children and office workers from catching viruses. It obtains an exact measurement of the CO2 value and the traffic light function prompts room inhabitants to ventilate.
OPI: What are the minimum standards for an air treatment system? MB: It depends very much on the size of the room and usage area. There are also different requirements for homes than for offices or schools. For example, some products are designed for use in private environments where you should allow two air changes per hour. Whereas, in offices and classrooms, you should have 4-5 air changes per hour, which requires a more powerful air filtration system. If the space is large, multiple machines can be installed. It is also worth noting any certifications a particular model has – a good one to check for is the European Centre for Allergy Research Foundation (ECARF).
RENZ AIR2COLOR PRO The AIR2COLOR PRO is an air quality meter and CO2 traffic light. It evaluates the four most important indicators of air quality: CO2 content, particulate matter, humidity and temperature. The device measures all values precisely and continuously on the touch display. The CO2 content is indicated via a bar, which is clearly visible from all sides, in the easy-to-understand traffic light colours of green, yellow and red.
VECTAIR SYSTEMS
OPI: Will the pursuit of ‘clean air’ become an integral part of office life in the post-pandemic world? Peter Lipke, CEO, Vectair Systems: The idea of cleaning the air inside a building is a critical one given the fact that indoor air can have levels of pollutants up to five times higher than outdoors (according to the United States Environmental Protection Agency). As a concept, air purifiers and odour neutralising solutions have been around for a long time and tend to be prevalent in places like care homes, where smells can linger and viruses are more dangerous to elderly inhabitants. Post-COVID, in offices and spaces where individuals gather, there will be an emphasis on both real and perceived cleanliness. Ozone generators and air purifiers can help with this. Businesses want to limit the spread of airborne viruses, as it may have an impact on workers wanting to come back to the office. They also want to rid spaces of unpleasant smells – after all, if a place doesn’t smell clean, our perception is that it isn’t. OPI: What benefits do ozone generator and odour neutralising systems offer? PL: Ozone generators neutralise odours, destroy harmful microorganisms and kill up to 99.5% of airborne viruses. They break down odour-causing compounds, removing bad smells you can’t mask with air freshener. Some models are portable, which is a real benefit as they can be used as needed and are especially good for confined spaces with few windows. Products like these really show a commitment to providing a healthier workplace. Vectair Prozone Ozone Generator The Prozone helps to eliminate unpleasant smells in different locations, including offices, homes and classrooms. It offers adjustable ozone production to match room sizes with coverage of up to 150 m3. The Prozone is suitable for either portable or fixed use and can be wall-mounted or left on a flat surface. There are two available versions – non-programmable or programmable with customised operation times. The Prozone contains no VOCs and incorporates Vectair’s Invizi-Touch antimicrobial protection technology.
March 2022
Leitz TruSens Z-3000 Air Purifier with SensorPod Air Quality Monitor The Leitz TruSens Z-3000 is designed for large rooms of up to 70 m2 and features remote sensor technology and two airflow streams. Offering 360º HEPA filtration, the system collects 99.97% of pollutants and neutralises odours by automatically adapting to changing air quality. A UV-C lamp eliminates bacteria and germs trapped in the filter. The SensorPod monitors air quality to optimise clean air delivery as the fan speed automatically adjusts in response to readings. A colour-coded illuminated ring and numerical value communicate good, moderate or poor air quality. In addition, the Z-3000 is ECARF certified.
The CO2 content of the air is an indicator of air quality – the higher it is, the lower the oxygen content, which can lead to a decrease in concentration and productivity. It also points to a high aerosol concentration which can increase the risk of infection by viruses.
SPOTLIGHT Air Treatment
RENZ GERMANY
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HOW TO...
Special Issue HEALTH & WELL-BEING
IMAGINING the
workplace of the future
Special Issue
VENDOR SPECIAL
Why do employers want people back in the office? Once they’ve figured that out – with the employee as well as the business top of mind – it’s time to reconfigure the workplace accordingly
W
ith a background in commercial and residential interior design, Jeanine Goddard started out as Showroom and Interior Designer for furniture and storage manufacturer Bisley in 2017, with responsibility for the vendor’s showrooms in major cities like New York, Dublin, Dubai, Paris and Madrid. In October 2021, she took on the additional – and newly created – role of Creative Director for the company. Her remit is to address the COVID-induced reimagination of the workplace, be that at home or in the office, and the greater awareness of the importance of well-being – physical and emotional – in both settings. Why, for instance, do people gravitate back to an office environment (if that is even the case)? If they are happy to return – or are required to do so, at least in some capacity – what are the key components for employers to get right; where do they need to put their focus? This is where trends and nice-to-haves meet essential requirements, according to Goddard.
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SPACE NEEDS
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The amount of space required in the ‘new normal’ workplace and what it looks like depend entirely on its purpose. This may sound like common sense, but often it’s essential to point out the obvious. A lawyer may want a lot of paper storage space close to specific desks, for instance, while digital nomads are unlikely to even need a dedicated workstation. Those working for tech-focused organisations and start-ups are good examples of the latter. What they do require, however, on top of an obligatory IT infrastructure, are storage
facilities and lockers for their motorcycle boots and helmets, their gym bags and so on. Essentially, anyone who doesn’t have a designated desk in the office should be provided with safe spaces to leave their personal belongings. And the onus is very much on the employer to offer those. Overall, the square footage of room required may not necessarily go down, but the number of physical desks needed almost certainly will. After all, when it comes to getting your head down and focus, on your own, on specific tasks, most people prefer to do this in their home environment these days, given the option.
People crave connection and are looking forward to seeing their colleagues and customers again. But they want to return to a different environment from the one they left two years ago CONNECTING IN COMFORT
People crave connection and are looking forward to seeing their colleagues and customers again. But they want to return to a different environment from the one they left two years ago. Formerly office-based people have spent so much time at home that they now seek the same comforts wherever they are. As such, workplaces have to be adapted – they have to be softer and more welcoming. Different textures and textiles are one way of creating more of a homely feel.
HOW TO... Workplace of the Future
Special Issue HEALTH & WELL-BEING Special Issue
VENDOR SPECIAL
Endless options: Bisley work environments
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VENDOR SPECIAL
to rest their laptop or coffee mug while chatting, for instance, is a nice way to keep them talking. Similarly, installing benches in corridors or outside meeting rooms gives colleagues somewhere to chat before and after meetings – while waiting for the next one to start or finish. THE RIGHT TECH ENVIRONMENT
BISLEY FAST FACTS Founded: 1931 Manufacturing: Newport, Wales (UK) CEO: Richard Costin Chairman: Tony Brown (son of Bisley founder Freddy Brown) Staff: 500+ Distribution: 70% B2B, 25% online reseller channel and 5% B2C Revenues: £80 million ($108 million) Sales coverage: 50 countries
As mentioned before, investment in appropriate technology equipment, software and overall IT infrastructure is absolutely vital as the current norm of hybrid working will almost certainly not go away. Yes, some people may be in the office, but it’s unlikely all of them will be at any one time, making the right set-up even more important. Staff joining in via Zoom or Teams need to have the correct equipment and be comfortable and so do those in the actual office. THE WORKPLACE OF THE FUTURE
As a general conclusion, the office-based workplace will feel more like home. This is not only important when trying to entice staff back, but also in terms of future recruitment. It’s what particularly younger generations will demand, otherwise they won’t be tempted to join. Offices could almost turn into service providers, similar to a hotel, whereby employers offer the possibility for people to meet and to really foster relationships and collaboration. Because these will be the main functions of an office in the future. Giving people the choice to work where they want will be paramount. It requires flexibility and an enormous amount of trust and confidence in your staff’s abilities by employers. This often doesn’t come naturally to some leadership personalities. The emphasis should be on output, not on clock-watching and monitoring.
March 2022
Biophilia is a big trend. Plants in the office generate a soothing atmosphere, while the colour green has been proven to be calming to the eyes. Equally, lighting needs to be warm and inviting, not harsh. Finally, if the option exists, give your employees an outdoor space to congregate – it’s a massive thumbs up for staff. The stark, functional conference room of the past can largely be consigned to history as the concept of the traditional ‘meeting’ has considerably evolved. Is it a one-to-one performance chat you’re after, a group brainstorming session requiring equipment like whiteboards and IT and remote people joining in, or a catch-up moment in a relaxed, home-type setting? In this context, zoning the workplace correctly is really important. It’s all about effective space planning whereby you create different zones for different activities, such as collaboration, focused work, meetings, etc. It’s also vital to allow employees to get away from their desks so they can have a break. The breakroom area may have completely changed with the absence of so many staff, but employees who return to the office still need a place where they can ‘take five’. Then there are the so-called water cooler moments – often frowned upon by employers pre-pandemic and viewed as wasting valuable ‘work’ time. However, informal interaction with colleagues and the spontaneous sharing of ideas are what many employees have been missing the most. And employers now realise there’s a business benefit too. These conversations, incidentally, should not be confined to a specific area, but be facilitated throughout the workplace. Dotting high tables around the office so that people have somewhere
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Workplace of the Future HOW TO...
THINKING AHEAD When Jeanine Goddard was named Creative Director of Bisley last October, the manufacturer also announced a new creative product department in an effort to address evolving working patterns. OPI’s Heike Dieckmann quizzed Goddard about the progress made and the way forward. OPI: What has been the response from the reseller community to Bisley’s investment in a more diverse working environment – and the product range this requires? Jeanine Goddard: It’s actually still very early days, as so many end consumers haven’t finalised their revised office concepts. Some haven’t even started yet, because employees continue to be based at home and there’s still a state of limbo as to what they need to do with their office spaces.
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OPI: So you’re very much at the beginning of the curve still. JG: Definitely. We can envisage what the workplace will look like, but we will only fully understand the reality when employers react to the new requirements. We are currently seeing a lot of employers conducting surveys, asking staff for their opinions and preferences about their return to the workplace, be that part-time, full-time or perhaps even not at all. In the US, for instance, only 20% of people are in the office at the moment. It means employers haven’t spent much time thinking about new layouts because they haven’t had to. As a manufacturer, naturally we are further up the curve, because we need to proactively anticipate and plan for what is going to happen, rather than having to react to it quickly. It’s about developing products which are suitable for the market today, but also in the future. The brief for our team is to develop ranges that will address the demands of a post-Covid world of work, which include softer materials and lines, using
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Bisley’s new Belong range
sustainable components, creating flexibility for users, and integrating new technologies. The process consists of several stages. It starts with ideas that are assessed with the help of a lot of research. We then devise a business plan which, if successful, sets in motion all the manufacturing capabilities and processes. OPI: Are there big discrepancies in the markets you operate in, in terms of working environments, which means post-COVID needs will likely vary a lot too? JG: Absolutely. In Germany, for example, the open plan offices that are quite standard in the UK – certainly in London – are much rarer. This alters the requirements for refits. It’s not just regional, however, but also dependent on type of companies and the industries they work in. Here too, it’s still very much a working-out-what-to-do process. This is where manufacturers and dealers can be helpful, as they already know what needs to change to create a practical, warm and welcoming office environment. Some workplaces will benefit from having fewer desks for focus-type work and more open, collaborative spaces to share ideas and be creative. Others may choose to move to a smaller office altogether, as fewer people are around at the same time. Workspaces need to evolve, but how this is executed will vary. OPI: The work-from-home (WFH) component is clearly here to stay, in a much expanded capacity compared to pre-COVID. I believe you’re addressing this with a brand new range called Belong. JG: That’s correct, although I would add that Belong was developed with both WFH and hybrid work in mind, meaning also office-based workplaces. It’s a collection available in a selection of colours and finishes, all with various
Jeanine Goddard
configuration options to fit any space or style at home or in the office. The premise is that it offers compact solutions for small spaces. This is often the case in the home, but will likely also be a key feature in many offices going forward. We refer to it as a sanctuary work environment. OPI: How do you go to market? JG: It’s pretty wide and varied. Project work is our mainstay, which is primarily done via the reseller community. These can be specialist furniture suppliers, interior design companies or manufacturers wishing to use our products as they complement their own ranges. We also work with the wholesalers and retailers, the latter both on the high street and online. We invested in our own Bisley Shop when the pandemic first hit. It attracts the home end user who typically just orders a few items as opposed to the big office refits that go through the B2B channel. OPI: Finally and looking ahead, what are Bisley’s future plans? JG: Bisley’s CEO Richard Costin has great ambitions for the company. He is fiercely proud of the fact we are an independently owned business with high values and deep traditions. Our main goal is to continue to support the resellers that really promote our brand although we do appreciate that, at times, other products may suit demands better. Our product development roadmap is at the very heart of our strategy, as are various CSR and sustainability initiatives that, we believe, are also hugely important to our customers. We are about to launch a number of new services which showcase our design flexibility and manufacturing capabilities. In addition, we will introduce more products in the coming months, both for the office and the home.
RESEARCH
Be
Special Issue HEALTH & WELL-BEING
MINDFUL Special Issue
VENDOR SPECIAL
Mental health and wellness should be taking centre stage for employers as they begin to assess a post-COVID world of work – by Michelle Sturman
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he issue of mental wellness in the workplace was already creeping up the boardroom agenda pre-COVID, in line with a growing focus on health and well-being. Now, as we approach the two-year mark that signalled the start of mandated lockdowns, work-from-home (WFH) orders and dealing with COVID-19-related grief, fear and stress – along with the economic impact threatening job security – the toll on mental health has been, in some cases, catastrophic. But this is nothing new. By 2018, the social and economic costs of mental health problems were already well documented. The impact resulted in a hit on individuals, businesses and wider society to the tune of 3.5-4% of GDP, according to an OECD Integrated Mental Health, Skills and Work Policy. The State of Health in the EU Companion Report 2021, meanwhile, suggests the pandemic “significantly increased levels of reported anxiety and depressive disorders in most European countries”. The study placed this figure at an average of 23-24% across EU countries in 2020. Research overwhelmingly indicates that anxiety and stress over the past two years have not merely affected those with pre-existing conditions. Both have additionally struck swathes of the global population due to the significant change in events brought about by COVID. Based on the Health at a Glance: Europe 2020: State of Health in the EU Cycle survey carried out by the OECD and the European Commission, the effects have been “particularly pronounced
Special Issue HEALTH & WELL-BEING
among people with lower socioeconomic status, young people, frontline workers, especially health and care workers, and for people with existing mental health conditions”. It adds that “people who were able to continue employment during confinement or to telework were less likely to report depression and anxiety”.
Special Issue
COLLECTIVE TRAUMA This latter point does not mean those able to continue to work – wherever this place of work may be – were immune. A 2021 study revealed that discussion of mental health in Glassdoor reviews has increased over 500% in the past three years. Equally, mentions of well-being have risen sharply (58%) since COVID arrived, while talk of burnout has jumped 128% since April 2021. Huge percentage jumps such as these are wholly unsurprising, given the collective trauma the world has endured since the start of 2020. For many, the stop-start nature of lockdowns resulting in toing and froing from being in the traditional workplace to working from home has been unsettling, to say the least. Pre-pandemic, mental health issues typically revolved around workload, burnout, work-life balance and discrimination. These are still of paramount concern, but COVID has thrown even more into the equation, namely feelings of isolation, grief, uncertainty, etc. As a result, the mental wellness industry posted strong 7% growth from 2019-2020, as people sought solutions to help them cope with the stresses of the coronavirus crisis, according to Global Wellness Institute (GWI) research, The Global Wellness Economy: Looking Beyond Covid. The largest mental wellness segment, ‘senses, spaces and sleep’, grew 12.4%, while the smallest, ‘meditation and mindfulness’, rose the fastest (25%). GWI forecasts 10% growth annually through 2025, to reach $210 billion, with spending heavily concentrated in North America, Asia-Pacific and Europe.
VENDOR SPECIAL
Special Issue
VENDOR SPECIAL
INCREASED AWARENESS One positive to be taken from the past couple of years, as mentioned in the Mind Share Partners’ 2021 Mental Health at Work Report, is that “amid all the disruption and trauma is the normalisation of mental health challenges at work”. The US-based study found that, increasingly, younger employees are resigning from their jobs for mental health reasons – 68% of millennials (50% in 2019) and 81% of Gen Zers (75% in 2019), compared with 50% of respondents overall (34% in 2019). In addition, 91% of respondents believe a company’s culture should support mental health, up from 86% in 2019. Across all organisational levels, mental health challenges are now the “norm”, with 76% noting at least one symptom in the past year, up from 59% in 2019. As regards workplace factors impacting mental health, the most common was an emotionally draining – stressful, overwhelming or monotonous – line of work. It was followed by work-life balance.
RETURNING TO THE OFFICE Now, as COVID-19 supposedly edges closer towards endemic status in many countries, anxiety is building around heading back to the office. In McKinsey’s Returning to Work: Keys to a Psychologically Safer Workplace, one-third of respondents to a June 2021 survey stated their return to work has harmed their mental health. Almost half (49%) of those who had yet to go back also anticipated negative impacts.
There is a “real risk” of another wave of anxiety and trauma for millions of people as they return to on-site work McKinsey asserts there is a “real risk” of another wave of anxiety and trauma for millions of people as they return to on-site work. In addition, with fewer than one in ten employees describing their workplace as free of stigma on mental or substance-use disorders, this risk is exacerbated. According to the study, out of those who were not in the workplace during the pandemic and have now returned, the impact on mental health has been almost evenly split: 36% noted negative effects, while 37% expressed positive effects. Chief among the concerns was safety and protection from contracting COVID, along with flexible scheduling. Addressing these issues may help alleviate some pressure, with 62% of respondents stating improved air filtration was a core request (see Spotlight, page 36), while flexible schedules (60%) and hybrid working arrangements (57%) could also reduce stress. As specified by Mind Share Partners, there are some common return-to-the-office plans which negatively impact employee mental health. These include: the policy around in-person versus remote work after the pandemic (41%); lack of work-life balance or flexibility based on a company’s policy (37%); lack of clarity about the return to the office process or timeline (31%); employers making decisions without consulting employees (30%); lack of clarity or consistency about expectations around work, productivity and related factors (28%).
TOP OF MIND The good news is that employee health is top of mind now, according to Wellable’s 2021 Employee Wellness Industry Trends Report, which surveyed health brokers based in the US. Results from the survey reveal nearly nine out of ten employers plan to invest more in this area. 81% plan to focus on stress management/ resilience, while 69% are looking to spend more on mindfulness and meditation benefits. As GWI points out, mental wellness is “no longer something one practices only with a meditation teacher, with a life coach, or on a retreat; it extends to our homes, schools, workplaces, exercise, built environment, and travel”. Numerous market opportunities are being created as a result, states GWI, involving everything from cannabis, human-centric lighting and biophilic design, to sound therapy gadgets and smart bedding.
2022 WORKPLACE MENTAL HEALTH TRENDS • Mental health training at every level of an organisation becomes standard • Well-being champions become a strategic and compelling priority • Hybrid mental health solutions – digital and in-person care – emerge as key for a hybrid world • Proactive mental health support becomes the norm – although reactive measures remain vital • Workforces learn the language to abolish stigma • Company leadership step up to the challenge • Health and safety is reborn – covering physical and psychological factors through ISO 45003 For more information on these trends, visit www.unmind.com
March 2022
SEEKING PROTECTION Despite a certain amount of negativity as regards a return to the workplace, some employees will actually be relieved to head back to the office as WFH induced stress responses in terms of having to deal with working set-up, childcare, etc. A Report on the Implementation of the OECD Recommendation on Integrated Mental Health, Skills And Work Policy from September 2021
notes: “While evidence dating from before the COVID-19 crisis on the mental health impacts of teleworking as compared to in-person work is mixed, concerns have been raised about evidence of longer and more irregular working hours in some countries, as well as the mental health challenges associated with the blurring of boundaries between work and home.” Legislation and policies designed to protect employee mental health have been forthcoming and are likely to be expanded following the rise of teleworking. Last year, the European Parliament called for an EU law that grants employees the right to digitally disconnect. This refers to the right to disengage and refrain from engaging in work-related electronic communications, such as emails or other messages during non-work hours. The directive should further “establish minimum requirements for remote working and clarify working conditions, hours and rest periods”. Several countries, including France, Italy, Spain, Greece and Portugal have such legislation already in place. Even as the pandemic wanes, it will be vitally important for companies to champion positive mental health awareness and support staff as the strains placed upon individuals over the past two years continue to linger. Policies and strategies will need to be in place to ensure the mental well-being of all staff, wherever they are.
RESEARCH Mental Health
Other issues notably worse since the pandemic hit are poor communication practices and a diminished sense of connection to or support from colleagues or managers.
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RESEARCH
An alternative REALITY?
Trying to investigate something that technically doesn’t yet exist is difficult. Luckily, there are already hints of what the metaverse could be, as OPI’s Michelle Sturman finds out…
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www.opi.net
ou’ve likely heard the word ‘metaverse’ mentioned recently, probably related to Facebook as it generated headlines late last year by rebranding to ‘Meta’. According to CEO Mark Zuckerberg, the metaverse is the embodied internet where you’re in the experience, not just looking at it, and you can do almost anything imaginable. He believes the metaverse is the successor to the mobile internet. In the company’s Q4 2021 earnings call, Zuckerberg said the metaverse – through its Reality Labs division which includes augmented (AR) and virtual reality (VR)-related consumer hardware, software and content – is an investment priority. This will equate to billions in spending. He added that the focus will be on the foundational hardware and software required to build “an immersive, embodied internet that enables better digital social experiences than anything that exists today”. Meta may seek to dictate the direction of the metaverse, but as it stands, there is no true definition of the concept because, in reality (pun intended), no one really knows what it will look like or how it will work. Investopedia offers a pretty good description: “As the metaverse grows, it will create online spaces where user interactions are more multidimensional than current technology supports. Instead of just viewing digital content, users in the metaverse will be able to immerse themselves in a space where the digital and physical worlds converge.”
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WHAT DOES IT ALL MEAN? Undertake any research into the metaverse and you’re likely to come across Matthew Ball, venture capitalist and essayist – well worth reading, especially his seven core attributes of the metaverse – who is often cited by those currently building or investing in this version of the internet. As such, his definition of the metaverse carries weight: “The metaverse is a massively scaled and interoperable network of real-time rendered 3D virtual worlds which can be experienced
synchronously and persistently by an effectively unlimited number of users with an individual sense of presence, and with continuity of data, such as identity, history, entitlements, objects, communications, and payments.” He also notes it is often “misdescribed” as virtual reality, which is actually just a way to participate in the metaverse. Nor is it a user-generated virtual world or a video game. Accessing the metaverse can be done through mobile or online, although the more immersive encounters will require VR and AR. However, there is already an inkling of what a non-VR, web-based metaverse could be like. Early explorers of the World Wide Web almost 20 years ago will remember Linden Labs’ Second Life – which still survives today – a multimedia platform where you created an avatar and inserted yourself in an online virtual world.
The metaverse is a massively scaled and interoperable network of real-time rendered 3D virtual worlds Those with children and/or teenagers will likely be familiar with the user-generated platform Roblox, or the massively popular game Fortnite. The latter is owned by Epic Games which, incidentally, last year announced a $1 billion funding round to support its long-term vision for the metaverse. REALITY BITES Virtual reality has been used for some time in gaming and consumer sales are expected to outpace enterprise spending. ARtillery Intelligence, which chronicles the evolution of AR and VR, estimates the sector will rise to $22.4 billion in 2025. Last year, consumer spend was $5.67 billion, driven by gaming, and enterprise was $3.44 billion due to its relatively narrow use. Originally hitting the limelight through Niantic’s Pokémon Go, augmented reality is currently
Metaverse RESEARCH
used for many applications to overlay digital content onto the physical environment. Mobile apps such as Google Lens or Live View in Google Maps are good examples. According to ARtillery Intelligence, today, around three billion smartphones are compatible with some type of AR, which will ultimately be boosted by the advent of 5G thanks to its speed, location accuracy and edge computing (for more on 5G, see Research, OPI January/February 2022, page 44). As it stands, no company has so far managed to crack the AR glasses market, although this could altogether change with rumours of Apple’s foray into the sector. Those familiar with Apple’s movements suggest a headset will be released first, followed by glasses. ARtillery Intelligence projects AR glasses spending to increase from a paltry $1.59 billion in 2020 to $17.7 billion in 2025, with enterprise spending constituting the overwhelming majority (89% by 2024). According to The NPD Group, meanwhile, sales of VR/AR hardware and accessories during the five-week holiday period (21 Nov-25 Dec 2021) in the US soared in unit and dollar sales, up 180% and 153%, respectively, over the prior year. For FY21, growth was only slightly lower, up 163% in unit sales and 137% in revenue. Ben Arnold, Executive Director and Technology Industry Analyst for NPD says: “As new devices become available, and the consumer base has an opportunity to grow, we expect positive momentum in the year ahead – starting with 32% revenue growth in the first half. The metaverse, VR/AR and smart glasses will be areas to watch in 2022.”
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BUSINESS BUILDING Definitions will change as the metaverse develops and subsequently evolves, but the building blocks and components already exist. Cryptocurrency, blockchain, non-fungible tokens (better known as NFTs), avatars and holograms are all expected to play a part in terms of the metaverse becoming a fully interactive world. This will create social, education, entertainment, commerce, creative and business opportunities. The metaverse also touches on the online business meeting phenomenon, which has seen so much traction during the COVID crisis. Meta, for instance, has launched a beta version of its collaborative workspace tool, Horizon Workrooms, which works across virtual reality and the web. It offers features such as mixed-reality
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WANT TO KNOW MORE? • Mark Zuckerberg’s keynote introducing Meta and the metaverse: https://www.facebook.com/Meta/videos/577658430179350 • Meta Horizon Workrooms: https://about.fb.com/news/2021/08/ introducing-horizon-workrooms-remote-collaboration-reimagined • Microsoft Mesh: https://www.microsoft.com/en-us/mesh • Watch Ready Player One: Steven Spielberg film based on a book of the same title by Ernest Cline. • Read more from Matthew Ball: https://www.matthewball.vc/allf/ forwardtothemetaverseprimer and https://www.matthewball.vc/all/ themetaverse • Highly recommended read: The Immersive Reality Revolution by T.P. Ffiske – available as a PDF by subscribing (free) to The Immersive Wire newsletter https://www.immersivewire.com desk and keyboard tracking, hand tracking, remote desktop streaming, videoconferencing integration and avatars. Not to be outdone, Microsoft has released Mesh for Microsoft Teams. Mesh “allows those in different physical locations to join collaborative and shared holographic experiences, with the productivity tools of Teams, where people can enter virtual meetings, send chats, collaborate on documents and more”. PwC’s Seeing is Believing report states that AR and VR have the potential to deliver a $1.5 trillion boost to the global economy by 2030, as business benefits become apparent and the technology advances. 5G will further help to unlock the possibilities of AR/VR technologies, as will the advancement of haptic technology, which enables users to ‘touch’ things in a virtual world. Breaking it down, PwC believes VR/AR represents a significant opportunity for businesses to create value and reduce cost in five distinct categories: product and service enhancement, healthcare, development and training, process improvements, and retail and consumer. FUTURE OUTLOOK According to a Market Research Future report (Global Metaverse Market Information by Component, by Platform, by Technology, by Application, by End Users, by Region – Forecast to 2030), the metaverse reached $21.9 billion in 2020 with a CAGR of 41.7% from 2021 to 2030. The need for all-encompassing online communities for networking, news, entertainment, gaming, education and dating will boost growth, says the research firm. It also expects the hardware segment (AR/VR headsets, etc) to dominate the market as manufacturers look to improve user experience. Access to the metaverse will be led by mobile while, by application, the gaming segment will capture the lion’s share. However, the report also cites personal privacy, competition and misinformation as potential restraints over the forecast period, with a warning of further challenges along the way involving, for instance, the threat of cyberattacks. There’s a lot to figure out to make the metaverse a genuine and commercial reality, but with billions being pumped into its creation, it will happen no doubt. The details remain sketchy, however.
OPWIL 6th Annual Retreat DATE: THURSDAY, APRIL 28 TO SUNDAY, MAY 1 LOCATION: COOLFONT RESORT AND RETREAT CENTER – BERKELEY SPRINGS, WV
UNCONQUERABLE During the past 20 months, we have all faced personal and professional challenges that have likely taken a toll on our relationships, motivation and wellness. The OPWIL UNCONQUERABLE retreat will celebrate the WINS, build motivation and confidence to conquer your goals and help create a plan for happiness and satisfaction in the workplace and at home. This retreat is designed to create awareness around your deepest dreams and desires in life, and how you can reach those dreams even when faced with obstacles and challenges. It’s difficult to wake up each day, feeling motivated and inspired. However, when you are living with intention, and have a clear purpose in life, you can reach your dreams with ease, and live a happier and more fulfilling life. If your dream is fuzzy right now or seems lost… our program will bring it into clarity. During this retreat, we will work through a series of individual and team activities that will help you get clear on what it is that you want, how to gain the confidence to make it happen, and set a plan in place to live your dreams. Those who attended the OPWIL BE10Again Retreat in 2019 and the virtual SOAR Retreat in 2020 will see this as the “next level” retreat for themselves. However, prior attendance is not required or needed. There is no better time than now to refocus on yourself, enjoy the company and support of other professional women, friends and colleagues, and build a clear path of resilience for the future.
Reserve Your Spot Now opwil.com/index.php/unconquerable/
Office Products Women in Leadership
5 MINUTES WITH...
Craig Noyle
CAREER Q&A Describe your current job. CEO of Inovocom, Southern Africa’s largest independent dealer group.
What’s your life philosophy? Try and live a life in harmony with yourself and those around you. Be respectful to all, but also never be afraid to express your own beliefs and values, and stand by your convictions.
Your worst ever job? A holiday job cutting out newspaper articles. If you weren’t doing your present job, what would you like to be doing? Farming fruit in South Africa’s Western Cape.
What scares you? It’s along the same lines: being told how to live my life by others, especially politicians who lack in moral standards. The hardest thing you’ve ever had to do? Completing a three-day mountain bike event – my first ever – in the Karoo after having broken an ankle six months earlier. Best way to spend the weekend? A long weekend is even better. Take a trip away from home, maybe a mountain bike ride, some game viewing, followed by a braai (BBQ) and a good bottle of wine. Early bird or night owl? Early bird – 100%. What song puts you in a good mood? Hot in the City by Billy Idol. It brings back memories of the carefree days travelling around Europe on a Contiki tour. Favourite time of the year? Autumn – the days are cooling off, you can sense the change of season, yet you still have the benefits of summer. What’s your guilty pleasure? It would have to be a chilled South African Sauvignon Blanc.
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What is humankind’s greatest invention? The internet. It’s created a global connection, bringing knowledge together for the whole world to share and benefit from, in the process advancing humanity in so many different areas.
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Craig Noyle, Inovocom
If the world had a President, who would you vote for? New Zealand’s Prime Minister Jacinda Ardern. She seems to grasp the complexities of our planet with an understanding of humanity, law and social justice. She also knows politics. Where would you like to travel and why? Two places: the Antarctic for its remoteness and uniqueness, and the Serengeti to witness the annual migration of the wildlife. What is on your bucket list? Several things: a trip to Japan, a cruise in Alaska, to ride the annual Cape Town Cycle Tour and the Lions Karoo to Coast mountain bike event. Favourite books? A Promised Land by Barack Obama and Remote Work Revolution by Tsedal Neeley. What’s your worst character trait? Impatience. What skill would you like to master? Bladesmithing – creating something unique that lasts forever.
What has been the best moment in your career? Creating our group model from the ground up and making a difference to so many independent dealers. Which industry figure do you most admire? Hans Servas, Chairman of Shop-SA and former Managing Director of Silveray Statmark. Always a gentleman and able to give an independent view without bias or judgement. Your best piece of advice to someone who has just joined the OP industry? If you ever think you know everything in this industry – get out! There is always something new taking place or something else to learn. If you could change one thing about our sector, what would it be? I would really like to see younger people aspire to enter our space because it’s professional, dynamic and evolving, with plenty of opportunities for career development. Favourite office product? Scissors – there’s nothing better than a quality pair of sharp scissors.
FINAL WORD
Efficient or
SHORT-SIGHTED?
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y and large, I’m a positive individual and rarely criticise others for their business practices. I certainly don’t make a point of doing it in writing. But I recently read something that piqued first my interest and then, in equal measure, anger and disappointment. It was a press release by the UK’s government agency Crown Commercial Services (CCS). It related to a new procurement platform that enables central purchasing of ‘tail spend’ estimated at £1 billion ($1.36 billion) across the country. Schools, charities, the NHS and other public and third sector organisations will be able to purchase all manner of products through the platform, it said, including office products and janitorial supplies as well as educational items.
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TAIL SPEND ‘SOLUTION’ The solution, it explained, will help public sector buyers to spend less time and money on invoicing, increase visibility and control of ‘hidden’ spend, and improve spend data. This is what CCS CEO Simon Tse said: “Tail Spend Solution is the first of its kind – a new agreement that supports the public sector to take control of its ad hoc purchases, aggregating the spending power of the UK public sector as we build back better. “There is wide agreement across the public sector that tail spend is an undermanaged and often overlooked area of spend that is increasingly important for organisations to deal with. “Use of self-serve, modern technology and aggregation to create efficiencies and empower staff outside of commercial functions is critical for buyers who wish to improve their delivery of commercial benefits beyond just focusing on the largest contracts.”
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What Mr Tse and the CCS completely fail to recognise is the importance of local enterprises and the fact that they are the lifeblood of our economy. They supply nearby businesses, schools, hospitals and many other government bodies. What is ‘tail end spend’ to the CCS is often significant turnover to these local entities. For a start, centralising this purchasing suggests local businesses are inherently more expensive to deal with. In my humble opinion, these operators can be extremely competitive when they work with suppliers which look to simplify the supply chain and take cost out by removing duplication and unnecessary waste of resources.
Tim Holmes, Commercial Director – Office Products, Exertis Supplies
I am fully on board with the need to digitise the procurement process in order to cut costs. But technology should be an enabler, not a solution It also ignores that, when a local business delivers to neighbourhood customers, these customers return the money they earn back into the local economy. By centralising a lot of this spend, money is taken away from that economy. As to what operators are involved with this new initiative, the press release stated: “Mercateo Unite and OT Group are launching CCS’s Tail Spend Solution framework on their online platforms on 26 January 2022 – opening up public sector procurement to a large supply chain of small and medium-sized suppliers, offering millions of products at market-leading prices.” STICKING TO PRINCIPLES When I started in my current role, we resolved to do things differently by concentrating on simplifying our processes, being as efficient as we can as a wholesale supplier to our customers, and never compete with those customers for end-user business. I am fully on board with the need to digitise the procurement process in order to cut costs. But technology should be an enabler, not a solution. It should allow regional businesses to be more competitive rather than aggregate spend to the detriment of the local economy. We have stuck to our principles and I’m very proud of that. And I’m confident this approach works extremely well for many independent office products dealers too.
NEXT ISSUE Big Interview Mike Maggio and Yancey Jones Sr, S.P. Richards Hot Topic Vendor strategies Category Updates • Visual communications • Paper Events • OPI Global Forum preview • European Office Products Awards review • City of Hope 2022 campaign
