Survey stationery 2012


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Survey stationery 2012

  1. 1. EU MARKET SURVEY 2004Stationery items, officeand school supplies
  2. 2. EU MARKET SURVEY 2004 STATIONERY ITEMS, OFFICE AND SCHOOL SUPPLIES Compiled for CBI by: Discovery Interior Trading in collaboration with Mrs. Y. Netto October 2004 DISCLAIMER CBI MARKET INFORMATION TOOLSAlthough the content of its market information tools has been compiled with the greatest care, theCentre for the Promotion of Imports from developing countries (CBI) is not able to guarantee that theinformation provided is accurate and/or exhaustive, and cannot be held liable for claims pertaining touse of the information.In the case of the market publications, neither CBI nor the authors of the publications acceptresponsibility for the use which might be made of the information. Furthermore, the information shallnot be construed as legal advice. Original documents should, therefore, always be consulted whereappropriate. The information does not release the reader from the responsibility of complying with anyrelevant legislation, regulations, jurisdiction or changes/updates of same.In the case of the Internet tools, CBI aims at minimising disruption caused by technical errors.However, CBI cannot guarantee that its service will not be interrupted or otherwise affected bytechnical problems. CBI accepts no responsibility with regard to problems incurred as a result of usingthis site or any linked external sites.The information provided is aimed at assisting the CBI target group, i.e. exporters and business supportorganisations (BSOs) in developing countries. It may, therefore, not be used for re-sale, the provisionof consultancy services, redistribution or the building of databases, on a commercial basis. Forutilization of the CBI market information tools by the CBI target group on a non-commercial basis, thecondition applies that CBI is referred to as the source of the information. All other use is prohibited,unless explicitly approved in writing by CBI.Photo courtesy: Discovery Interior Trading 1
  3. 3. Table of Contents EU Market Survey -- annual update --REPORT SUMMARY 4INTRODUCTION 7PART A: EU MARKET INFORMATION 91 PRODUCT CHARACTERISTICS 10 1.1 Product Groups 10 1.2 Customs/Statistical Product Classification 112 INTRODUCTION TO THE EU MARKET 123 CONSUMPTION / INDUSTRIAL DEMAND 14 3.1 Market size 15 3.2 Market segmentation 20 3.2.1 Market segmentation by product 20 3.2.2 Market segmentation by user 26 3.3 Consumption patterns and trends 30 3.3.1 Demographic trends 30 3.3.2 Social & Cultural trends 31 3.3.3 Technical trends 34 3.3.4 Economic trends 354 PRODUCTION 36 4.1 Production per product group 375 IMPORTS 41 5.1 Total imports 41 5.2 Imports by product group 46 5.3 The role of the developing countries 536 EXPORTS 567 TRADE STRUCTURE 59 7.1 EU trade channels 59 7.1.1 Types of intermediaries 61 7.1.2 Stationery retailers 64 7.2 Distribution channels for developing country exporters 678 PRICES 69 8.1 Price development in the stationery market 69 8.2 Sources of price information 739 REQUIREMENTS FOR ACCESS 74 9.1 Non-tariff trade barriers 74 9.2 Tariffs and quotas 80 2
  4. 4. PART B: EXPORT MARKETING GUIDELINES: ANALYSIS AND STRATEGY 8310 EXTERNAL ANALYSIS 85 10.1 Market developments and opportunities 85 10.2 Competitive analysis 87 10.3 Sales channel assessment 88 10.4 Logistics 89 10.6 Price Structure 90 10.7 Examples: Product Profiles 9411 INTERNAL ANALYSIS 97 11.1 Product standards/ quality, Production capacity, Product design & development and Unique selling points 97 11.2 Logistics 98 11.3 Organisational Structures 99 11.4 Marketing and sales 100 11.5 Financing 101 11.6 Capabilities 10312 DECISION MAKING 104 12.1 SWOT and situation analysis 104 12.2 Strategic options & objectives 10413 MARKETING TOOLS 106 13.1 Matching products and the product range 106 13.2 Building up a relationship with a suitable trading partner 107 13.3 Drawing up an offer 108 13.4 Handling the contract 110 13.5 Sales promotion 112APPENDICES 1151 DETAILED HS CODES 1152 DETAILED IMPORT STATISTICS 1183 DETAILED EXPORT STATISTICS 1324 USEFUL ADDRESSES 135 4.1 Standards organisations 135 4.2 Sources of price information 136 4.3 Trade associations 138 4.4 Trade fair organisers 139 4.5 Trade press 141 4.6 Important stationery buying groups 142 4.6 Other useful addresses 1445 LIST OF DEVELOPING COUNTRIES 1456 LIST OF ACP COUNTRIES 1467 LIST OF GSP COUNTRIES 1478 REFERENCES 148This is a new CBI publication with a new format and contents. It partially replaces the CBI, EU Market surveyand EU Strategic marketing guide “Stationery items, office and school supplies” published April 2003. 3
  5. 5. REPORT SUMMARYThis survey profiles the EU market for stationery items, office and school supplies, referred tothroughout this report as stationery. The emphasis of this survey lies on those products which are ofimportance to suppliers based in developing countries. The product groups discussed in this surveyinclude: envelopes, paper-based products, writing & drawing instruments, storage & filing products,office & desk accessories, presentation & planning materials, greeting cards and bags & briefcases.Note that these products groups are not the only products which could offer chances for exporters indeveloping countries. The major national markets of Germany, United Kingdom, France, Italy, Spain,the Netherlands and Belgium are highlighted. Readers should, however, note that the size of a marketis not the only determinant of its attractiveness for an exporter. Other determinants, such as per capitaconsumption and an easily accessible distribution structure, could make certain country markets veryattractive. On that basis, for example, the Scandinavian countries could be attractive for exporters indeveloping countries.Part A of this survey includes statistical market information on consumption, production, trade andtrade structure and requirements for access. As an exporter, you will need this information in order toformulate your own market and product strategies. Part B of this survey contains export-marketingGuidelines, a practical handbook for exporters engaged, or wishing to engage, in exporting stationeryto the European Union.ConsumptionThe stationery market in the reviewed countries is a mature and reasonably stable market only growing0.6 percent between 2001 and 2002 reaching a value of € 9,641 million at manufacturers’ selling price(MSP), equivalent to € 15,318 million at user buying price (UBP) excl. VAT). It should be noted thatgreeting cards and bags & briefcases are not included in this figure, because statistics concerning thesemarkets are not compiled by the research agency MPA International.Germany is by far the biggest stationery market of the reviewed countries. In 2002, the Germanymarket accounted for a value of € 2,812 million at MSP, followed by the United Kingdom (€ 2,244),France (€ 1,645), Italy (€ 1,083), Spain (€ 964) and the Benelux (€ 851). The stationery market can besegmented in to three different types of users, professional, Small office and Home office (SoHo) andprivate users. Each segment has its own specific requirements (see § 3.2.2) and the SoHo market,particularly, is growing due to the trend to outsourcing and sub-contracting in the EU businessenvironment.ProductionOver the last decade, the stationery market has become increasingly competitive, caused by thematurity of the market and the increasing pressure of low-cost imports deriving from low-costcountries. In order to survive, economies of scale were of vital importance and this, in turn, has led totake-overs, mergers and restructurings.ImportsIn 2002, the total import of stationery of the EU-15 remained stable for the second year in a row. Thatyear, imports accounted for a value of € 9,947 million. Apparently, the stagnation of the economy in2001 had its influence on the import of stationery. The United Kingdom is the leading importer,accounting for 18.8 percent of the total value imported into EU countries, followed by France (16.1%),Germany (15.5%), Italy (9.6%), Belgium (8.2%), The Netherlands (7.1%), and Spain (6.6%).In 2002, bags & briefcases (32.6%) formed the leading import product group, followed by office &desk accessories (24.8%), writing & drawing instruments (15.3%), paper-based products (15.0%),storage & filing products (4.9%), envelopes (4.1%), greeting cards (2.7%) and presentation & 4
  6. 6. planning materials (0.6%). In 2002, developing countries accounted for 26.7 percent of the EU-15import up from 23.1 percent in 1998. In 2002, the United Kingdom was the largest import ofstationery from developing countries followed Germany and FranceIn the Bags & Briefcases imports, developing countries hold the strongest positions, accounting for34.9 percent of the total EU-15 imports in terms of value. In the envelopes and office & deskaccessories imports, the position of developing countries is relatively weak, accounting for only 1.5and 8 percent of total EU-15 imports in terms of value. For additional information on the shares ofdeveloping countries we refer to paragraph 5.3 and Appendix 2ExportThe EU-15 is home to several of the biggest stationery exporting countries in the world, like GermanyFrance and Italy. In 2002, the EU-15 countries together exported € 10,072 million of stationery. In2002, the EU-15 countries accounted for 58.3 percent of this export. The largest exporter of stationeryin the EU-15 was Germany. Germany accounted for 22.8 percent of the total exported value in 2002.Other key exporting countries were Italy (19.2%), France (18.1%), the United Kingdom (10.4%) andBelgium (8.9%). The main products exported by EU-15 countries are Office & Desk Accessories(28.1% of total EU exports), followed by Bags & Briefcases (28.0%), Paper-based products (17.3%),Writing & Drawing Instruments (15.3%), Envelopes (4.4%), Storage & Filing products (3.9%),Greeting cards (2.4 %) and Presentation & Planning materials (0.5%). For additional information werefer to Appendix 3OverviewIn the figure below, we have presented a graphic summary of chapters 3 to 6. The size of each circlerepresents the size of the market in terms of consumption. As can be seen in this figure, Germanytogether with the United Kingdom are the leading markets in terms of consumption size. On thehorizontal axis, lies the trade balance, which is the difference of the export minus the import. Of theseven countries discussed in this survey, only United Kingdom and Spain do not have a positive tradebalance and are therefore net importers of stationery. The vertical axis represents the percentage of theimport deriving from developing countries. In the figure below, the horizontal axis crosses the verticalaxis at 26.7 percent, indicating that the EU-countries on average import 26.7 percent of their totalimport from developing countries.Graphic summary Chapters 3-6: Market attractiveness on basis of market size, import share derivingfrom developing countries, trade balance and consumption growth in terms of value 2001-2002 United Kingdom 40% % of import from DC growth -0.3% 38% Spain growth 3.3% 36% 34% Italy Germany 32% growth 0.8% growth -0.9% 30% Benelux Trade balance in € million 28% growth 1.1% 26% -1,000 -800 -600 -400 -200 - 200 400 600 800 1,000 24% France 22% growth 1.6% 20% Source: Eurostat & MPA International 5
  7. 7. As can be seen, the United Kingdom, together with Spain, Germany and Italy, import more than theEU-15 average from developing countries. In 2002, 36.9% of the United Kingdom’s imports camefrom developing countries. When looking at the variables in this figure, the upper-left cornerrepresents the most attractive stationery markets for developing countries in terms of import share andtrade balance. Secondly, come the countries in the upper-right quadrant, Germany and Italy. Howeverthe positive trade balance indicates that these countries are in possession of a strong home productionbase, making them comparatively less easy to access. In the figure we have also mentioned the marketgrowth of the countries reviewed. Spain together with France, are the star performers, growingrespectively 3.3% and 1.6% in 2002.The attractiveness of an export market is not solely determined by the factors discussed in theoverview. Factors like trade structures, consumer preferences and tastes are also very important forsuccessful export marketing. An exporter should also note the different requirements laid down inlegislation and restrictions of the export market. In Chapter 9 of this survey, the requirements ofaccess are discussed.Opportunities and threatsBecause of the increasing competition in the stationery market, it is difficult for manufacturers,especially small-scale ones, to retain a profitable share of the EU markets. Although the developingcountries’ share of EU-15 imports is growing, it should be noted that this growth is partly due tooutsourcing by Western manufacturers on the one hand and a number of large manufacturers mainlybased in low-wage countries.Because the stationery market can be characterised as a relatively stable and mature market,innovation of product and design is therefore the keyword. Therefore, we think that there are goodopportunities for companies in developing countries, which can offer innovative products at goodquality against competitive prices and which can also meet other market requirements such as qualityassurance, reliability in delivery, environmental aspects and working conditions. In, for example, thehandmade segment of the stationery market there are substantial opportunities for manufacturers indeveloping countriesUp-to-date information on trends and developments is therefore more important than ever. Overseascompanies that want to tap into the EU market have to be aware of the market developments.International and domestic trade fairs, exhibitions and visits to shops in the export country offervaluable information and provide opportunities to build good relationships with importers andretailers.This survey offers you a framework for deciding whether or not to export to the European Union and,if you decide to do so, provides you with leads and guidelines to assist your decision-makingregarding which products and markets to focus on. For information on current CBI Programmes,training & seminars, and on how to download market information and CBI News Bulletins, pleaserefer to CBI’s internet site “”. 6
  8. 8. INTRODUCTIONThis CBI survey consists of two parts: EU Market Information and EU Market Access Requirements(Part A), and Export Marketing Guidelines (Part B). Market Survey Part A EU Market Information and Market Access Requirements EU Market Information (Chapters 1-8) EU Market Access Requirements (Chapter 9) Product characteristics Quality and grading standards Introduction to the EU market Environmental, social and health & safety issues Consumption and production Packaging, marking and labelling Imports and exports Tariffs and quotas Trade structure Prices Part B Export Marketing Guidelines: Analysis and Strategy External Analysis (market audit) Internal Analysis (company audit) (Chapter 10) (Chapter 11) Opportunities & Threats Strengths & Weaknesses Decision Making (Chapter 12) SWOT and situation analysis: Target markets and segments Positioning and improving competitiveness Suitable trade channels and business partners Critical conditions and success factors (others than mentioned) Strategic options & objectives Export Marketing (Chapter 13) Matching products and product range Building up a trade relationship Drawing up an offer Handling the contract Sales promotionChapters 1 to 8 of Part A profile the EU market for “Stationery items, Office and School supplies”hereafter called stationery. The emphasis of the survey lies on those products, which are of importanceto developing country suppliers. The major national markets within the EU for those products arehighlighted. Furthermore, statistical market information on consumption, production and trade, andinformation on trade structure and opportunities for exporters is provided. Chapter 9 subsequentlydescribes the requirements which have to be fulfilled in order to get market access for the productsector concerned. It is, furthermore, of vital importance that exporters comply with the requirements ofthe EU market in terms of product quality, packaging, labelling and social, health & safety andenvironmental standards. 7
  9. 9. After having read Part A, it is important for an exporter to analyse target markets, sales channels andpotential customers, in order to formulate export marketing and product strategies. Part B thereforeaims to assist (potential) exporters from developing countries in their export-decision making process.After having assessed the external (Chapter 10) and internal environment (Chapter 11), the (potential)exporter should be able to determine whether there are interesting export markets for his company. Infact, by matching external opportunities and internal capabilities, the exporter should be able toidentify suitable target countries, market segments and target product(s) within these countries, andpossible trade channels to export the selected products (Chapter 12).Chapter 13 subsequently describes marketing tools which, can be of assistance in successfullyachieving the identified export objectives.The survey is interesting for both starting exporters as well as exporters already engaged in exporting(to the EU market). Part B is especially interesting for more experienced exporters starting to export tothe EU and exporters looking for new EU markets, sales channels or customers. Starting exporters areadvised to read this publication together with the CBI’s Export planner, a guide that showssystematically how to set up export activities and the interactive tool on the CBI website “Exportmarketing plan”. 8
  11. 11. 1 PRODUCT CHARACTERISTICSThis survey analyses the market for Stationery items, Office and School supplies” in the EuropeanUnion. Stationery items, office and school supplies cover a wide range of products used foradministrative work in the office and at school, for private use at home as well as for creativepurposes. In order to provide insight into the diverse applications of stationery items, office and schoolsupplies, we have distinguished eight product groups, which we deem of interest for exporters indeveloping countries. One should note that these products groups are not the only products whichcould offer chances for exporter in developing countries. The selected product groups are thefollowing: • Paper-based products • Envelopes • Storage & Filing products; • Writing & Drawing instruments; • Presentation & Planning materials; • Office & Desk accessories; • Greetings cards • Bags & BriefcasesThe product sectors covered in this market survey are discussed in 1.1 below. This survey does notinclude software and electrical office equipment like faxes, computers, printers, etc. Office furniture isalso not included in this survey, for information concerning this topic we refer to the CBI survey“Domestic Furniture”. Leather goods, like leather organisers, and maps are also not included in thissurvey. For information concerning these products we refer to the CBI survey “Leather goods”.Furthermore, office paper, for copiers and laser printers, is excluded from this survey.1.1 Product groupsIn this paragraph, we will give a short definition of the eight product groups included in this survey.Paper-based productsPaper-based products include all paper items: writing pads, exercise books, memo & refill pads,duplicate and analysis books, notebooks, account books, diaries, wrapping paper and calendars.Envelopes and greetings cards are excluded from this segment, since these are dealt with separately.EnvelopesThis segment includes different types of envelopes, which are used to pack documents or otherproducts, which are sent by mail generally through postal services. Envelopes are available in differentsizes and types, like, for example, window, self-seal, padded, booklet, square, open-end, two-wayremittance, strip n grip, priority mail, payroll envelopes.Storage & filing productsThis segment includes different types of filing products, which are used to save and store documents,like: Manila files, soft plastic filing, suspension filing, ring binders, lever arch files, archival filing,indexes and dividers.Writing & Drawing InstrumentsThis segment includes all sorts of products which consumers use to write, mark, draw or paint.Stationery in this product group includes: pencils, ballpoints, rollerballs, gift pens, fountain pens,fibre-tipped pens, plastic-tipped pens, crayons, highlighters, markers, and refills. Erasers, correctionaids, pencil sharpeners and brushes of many types and qualities are also included in this product group. 10
  12. 12. Presentation & Planning materialsThis segment includes planning boards, wall boards, white boards, flipcharts & accessories, calendarsand year planners. These products are often used to give a presentation.Office & Desk accessoriesThe segment Office & Desk accessories includes many products, like, adhesive tapes, paper and cardadhesives, sticky notes, letter- and pen trays, scissors, pins, clips, fasteners, staplers, staples, stapleextractors, punches, guillotines, trimmers, letter trays/racks and waste bins. Artistic materials likecharcoal, graphite-pens, oil- and watercolour paints, as well as painting accessories such as frames andpaint brushes are included in this product group.Greeting CardsThe segment Greeting Cards includes Christmas cards, New Year cards, Valentine cards, birthdaycards, graduations cards, change of address cards, marriage cards, etc. Generally cards are used to posta message to a friends, acquaintances, etc.Bags & BriefcasesThe segment Bags & Briefcases includes: briefcases, attaché cases, school bags, computer trolleys,laptop bags and rucksacks.1.2 Customs/ Statistical products classificationThe nomenclature for statistics within the Europe Union does not specify stationery as such. Thetrading classification systems used were unified by the introduction of a new, worldwide codingsystem introduced on January 1, 1988. This system is called the Harmonized Commodity DescriptionSystem (HS) and was developed by the World Customs Organisation (WCO). The system comprisesabout 5,000 commodity groups; each identified by a six-digit code, arranged in a legal and logicalstructure and is supported by well-defined rules to achieve uniform classification. More than 177countries and economies use the system as the basis for their customs tariffs and for the collection ofinternational trade statistics. WCO has introduced some alterations to the HS and these are included inthe combined nomenclature as of January 1, 2002. After the six-digit code, countries are free to usefurther subheadings. An 8-digit system is used in the trade data of Eurostat. Most codes, however, endwith two zeros, i.e. effectively only using six digits. In some countries, ten digits are even occasionallyused.Table 1.1 Harmonised System (HS) classification stationery Product group Heading HS codes Paper-based products 4820, 4821, 4903, 4910 Envelopes 4817 Storage & Filing products 4819, 4829, 8304, 8305 Writing & Drawing instruments 3213, 4016, 9603, 9608, 9609 Presentation & Planning materials 9610 Office & Desk accessories 3506, 3926, 8213, 8214,, 8305, 8441, 9608 Greeting cards 4817 Bags & Briefcases 4202 Source: EurostatIn order to make this market survey/guide operational the survey has been limited to describe theabove selected product groups. The HS classification given in Table 1.1 differs in some degree fromthe product groups mentioned in paragraph 1.1. This is caused by the fact that the information used inthis market survey is obtained from a variety of different sources. Therefore, extreme care must betaken in the qualitative use and interpretation of quantitative data. This puts limitations on in-depthinterpretation of trade figures and of the possible relationships between import and export figures onthe one hand and consumption figures on the other hand. For a more detailed list of product groups,please refer to Appendix 1. 11
  13. 13. 2 INTRODUCTION TO THE EU-MARKETThe European Union (EU) is the current name for the former European Community. Since 1 January1995, the EU has consisted of 15 member states. Ten new countries joined the European Union inMay 2004; those so-called ‘accession’ countries are Poland, Lithuania, Estonia, Latvia, Hungary, theCzech Republic, Slovenia, Slovakia, Malta and Cyprus. According to Eurostat, the EU has grownfrom 15 countries with 379,6 million residents to 25 countries with approximately 450 millionresidents. Negotiations are in progress with a number of other candidate member states.Table 2.1: Population and GDP of EU countries, 2002 Countries/category Population Age 15-64 GDP (€ billion) Germany 83.3 million 68% 2,206 France 59.8 million 65% 1,556 United Kingdom 59.8 million 66% 1,485 Italy 57.7 million 67% 1,416 Spain 40.1 million 68% 836 The Netherlands 16.0 million 68% 417 Belgium 10.3 million 66% 315 Source: World factbook, 2003Within Western Europe – covering 15 EU countries, Iceland, Liechtenstein, Norway and Switzerland– more than 20 million enterprises are active, made up mostly of small and medium-sized enterprises(SME’s). In 2000, the average turnover per enterprise of SME’s and large enterprises amounted to €600,000 and € 255 million respectively.EU HarmonisationThe most important aspect of the process of Table 2.2: Overview15 EU-Countries, 2002 Population 379.6 millionunification (of the former EC countries), which affects Area 31,443,000 km2trade, is the harmonisation of rules in the EU Density 83 people per km2countries. As the unification allows free movement of Languages 11 (excl. dialects)capital, goods, services and people, the internal GDP/capita 21,023borders have been removed. Goods produced or Currencies €, UK£, DKr., SKr.imported into one member state can be moved around Exchange € 1 = US$ 1.21between the other member states without restrictions.A precondition for this free movement is uniformity in the rules and regulations concerning locallyproduced or imported products. Although the European Union is already a fact, not all the regulationshave yet been harmonised. Work is in progress in the fields of environmental pollution, health, safety,quality and education. For more information about harmonisation of the regulations, visitAccessGuide, CBI’s database on non-tariff trade barriers at “”.Monetary unit: EuroOn 1 January 1999, the Euro became a legal currency within twelve EU member states: Austria,Belgium, Finland, France, Germany, Greece, Italy, Ireland, Luxembourg, The Netherlands, Spain, andPortugal. In 2002, circulation of euro coins and banknotes replaced national currency in thesecountries. Denmark, United Kingdom and Sweden have decided not to participate in the Euro.The most recent trade statistics quoted in this survey are from the year 2002. In this market survey, theEuro (€) is the basic currency unit used to indicate value.StatisticsTrade figures quoted in this survey must be interpreted and used with extreme caution. The lion’sshare of information derives from research agencies, such as Euromonitor, Eurostat, Mintel,Datamonitor, MPA International and KeyNote. Furthermore, information from different articles has 12
  14. 14. been used to broaden the view of the market. Other methods used to collect information are tradeinterviews with importers and retailers of stationery products, store checks and desk research. Becauseof the variety of sources used, extreme care must be taken in the qualitative use and interpretation ofthe quantitative data in this survey.The collection of data regarding trade flows has become more difficult since the establishment of thesingle market on 1 January 1993. Until that date, trade was registered by means of compulsorycustoms procedures at border crossings, but, since the removal of the intra-EU borders, this is nolonger the case. Statistical bodies like Eurostat cannot now depend on the automatic generation oftrade figures. In the case of intra-EU trade, statistical reporting is only compulsory for exporting andimporting firms whose trade exceeds a certain annual value. The threshold varies considerably fromcountry to country, but it is typically about € 100,000. As a consequence, although figures for tradebetween the EU and the rest of the world are accurately represented, trade within the EU is generallyunderestimated.Furthermore, the information used in this market survey is obtained from a variety of differentsources. Therefore, extreme care must be taken in the qualitative use and interpretation of quantitativedata, throughout the text, as also in comparisons of different EU countries with regard to marketapproach, distribution structure, etc. For more information on the EU market, please refer to the CBI’smanual “Exporting to the European Union”.SurveyThis survey profiles the EU market for stationery, in which seven selected markets within the EU arehighlighted. The selection is based on a quantitative and qualitative comparison of consumption andimports/exports of the EU countries, as will be further explained in the following chapters of thissurvey. The countries selected for this survey are Germany, United Kingdom, France, Italy, Spain, TheNetherlands and Belgium, which are the largest countries in the EU, when it comes to consuming andimporting stationery. One should however note that total market size is not the only determinant forconducting successful export. Other determinants like per capita consumption and an easily accessibledistribution structure could make less populous countries, i.e. the Scandinavian countries, veryattractive for exporters in developing countries. It is therefore important for exporters not to focussolely on the market size of the large countries.When speaking about the EU, the ten so-called accession countries are not included in the informationgiven. Because information concerning the accession countries (Poland, Lithuania, Estonia, Latvia,Hungary, the Czech Republic, Slovenia, Slovakia, Malta and Cyprus) is not richly available, it isdifficult to give a thorough analysis concerning these markets. This survey therefore only sparselydeals with these countries.Note that the figures used in this survey can differ substantially from the figures presented in thepreceding survey CBI survey: “Stationery items, office and school supplies, April 2003”. This ismainly caused by the fact that other sources of information are used. Note also that most of the figuresgiven in Chapter 3 are given in Manufacturer Selling Prices (MSP) instead of consumption figures. 13
  15. 15. 3 CONSUMPTIONThis chapter presents a general overview of the stationery market, highlighting the countries andproducts specified in Chapters 1 and 2. The consumption figures given however are not available forall the separate product groups. The information used in this chapter is largely based on the reports ofMPA International, Datamonitor, Euromonitor and KeyNote. All these research agencies haveconducted some sort of research on the stationery market in Europe (for more information, we refer toAppendix 8. Furthermore, various articles published by different institutes are used. The informationfrom these sources can, however, include consumption data of products that are beyond the scope ofthis survey, whilst they exclude consumption data of articles that may be relevant. Therefore, theinformation in this chapter is not unequivocal. Because of the different sources of information, someassumptions are made concerning the given information.The total market figures include the following products: office paper, paper-based products,envelopes, storage & filing products, writing & drawing instruments, presentation & planningmaterials and office & desk accessories. This selection is largely based on a selection made by MPAInternational. The products group Greeting Cards and Bags & Briefcases are not reflected in thisfigure. The total figure also includes the product group Office Paper (includes copier/laser grades, topquality writing- and specialist inkjet papers) which is beyond the scope of this survey. Besides itshould be mentioned that the MPA International statistics concerning the paper-based products do notinclude products like calendars, diaries, photo albums, etc. Therefore, some additional informationregarding these product groups will be given based on information from Euromonitor. Furthermore, itshould be noted that the figures from MPA International are given at manufacturer selling prices(MSP) and users buying price (UBP). The first indicates the price at which manufacturers sell theirproducts to resellers, like wholesalers. The latter is the price at which the eventual user buys theproduct (i.e. a net price, which is not necessarily the price at which it is marketed; it does not includeany VAT). One should note that the mark up between the MSP and the UBP is an accumulation ofdifferent product ranges. The mark up between different product groups can differ substantially.Caution should therefore be applied when using these mark ups.The figures regarding the product group Greeting Cards originate from Datamonitor are given at retailselling price (RSP) and include all taxes. Furthermore, it must be noted that figures concerning theGreeting Cards product group are not available for each country covered in this survey. Information isonly available for Germany, France and the United Kingdom. Regarding Bags & Briefcases, nostatistical information is available.Figure 3.1: Reviewed stationery markets, Segmentation by Country and by Product: % Share by Value, 2002 Presentation & Planning materials Envelopes Benelux 13.8% 15.8% 9.0% Office & Germany Paper based Desk Spain 29.2% products accessories 10.0% 4.9% 8.6% Italy Storage & 11.2% Filing products 12.4% Office Writing & paper France United Drawing 29.7% 17.1% Kingdom Instruments 23.4% 14.8% 14
  16. 16. Source: Datamonitor, 2003Unfortunately, the MPA International information does not provide data concerning the entire EU.This chapter, therefore only deals with the consumption of the following countries: German, theUnited Kingdom, France, Italy, Spain, and the Benelux. Unfortunately, MPA International does notmake a distinction between the Netherlands, Belgium and Luxembourg.3.1 Market sizeThe market for stationery in the reviewed countries is a mature and reasonably stable only growing 0.6percent between 2001 and 2002 reaching a value of € 9,641 million at manufacturers’ selling price(equivalent to € 15,318 million at user buying price), according to MPA International. As can be seenin figure 3.1, Office Paper is the largest stationery product group, accounting for a 30 percent share ofthe stationery market, equivalent to a value of approximately €2,868 million at manufacturers’ sellingprice (€ 4,140 million at user buying price). On the vertical axis of figure 3.2, you will find the importdevelopment in value in the year 2002. As can be seen, the office paper market grew by 3.1 percent in2002, making it the fastest growing of the product groups represented in figure 3.2. The horizontalaxis gives a prediction of the market growth between 2002 and 2006. Again, the office paper market isforecast to see the largest growth and expected to increase by almost 20 percent in size, between 2002and 2006, whereas the writing & drawing instrument market is predicted to grow by only 2.5 percentin the same period.Germany is by far the biggest stationery market, accounting for 29 percent of the consumption of thereviewed countries. At a considerable distance, we find the United Kingdom (23%), France (17%),Italy (11%), Spain (10%) and Benelux (9%).Figure 3.2: European Stationery market: relative attractiveness (excl. greeting cards) based on € value at Manufacturers’ selling price 4% Office paper 3% 2% % growth 2002 Office & Desk 1% accessories Storage & Filing products 0% - 10% - 5% 0% 5% 10% 15% 20% Presentation - 1% & Planning Paper based Envelopes materials products - 2% Writing & Drawing instruments - 3% % prognosis growth 2002 - 2006 Circle size based on Books & pads € 473 million at MSP (€828 million at UBP Manufacturer selling price, 2002 Office paper € 1,512 million at MSP (€ 2,070 million at UBP) Source: MPA International, 2003The economic downturn that affected Europe in 2001, saw many stationery segments declining invalue between 2001 and 2002. As can be seen in figure 3.2 only the Office paper (+3.1 percent) andthe Office & Desk accessories (+1.1 percent) markets grew in terms of value. The other stationery 15
  17. 17. markets all showed a minor decline in value terms. The Paper-based product market showed thebiggest decline, in 2002 this market dropped by 2 percent. Because of the declining school populationand increasing computerization, this decline is forecast to continue in the near future, according toMPA International. We should, however, note that the MPA International figures do not include all theproducts selected in this segment (for more information we refer to § 3.2). The office paper market isforecast to grow by 19.4 percent towards 2006 (horizontal axis). The other product segments reflectedin figure 3.2 are forecasted to grow only marginally.Germany Figure 3.3: The German Stationery market:As noted earlier, Germany is by far the biggest Segmentation, % Share, by value, 2002stationery market in Europe, accounting for 29 Presentationpercent of the consumption of the reviewed & Planningcountries. The German stationery market was materials Envelopesaffected by the weak economy. In 2002, the 18.7% 13.5% Paper basedGerman stationery market performed well below productsaverage dropping by 0.9 percent to a value of € Office & 4.6%2,812 million at MSP. This drop can be explained Deskby declining market prices, which was due to the accessoriesincreasing dominance of discounters in the 7.5%German retail market, (source: Euromonitor). Due Office Storage &to this development, the German stationery market paper Filingis a highly competitive marketplace. products 28.3% Writing & 13.8%In 2002, only the Office Paper and the Office & DrawingDesk accessories markets showed a positive Instrumentsdevelopment, growing respectively by 3.6 and 1.0 13.6%percent. Source: MPA InternationalThe Presentation & Planning Materials market showed the biggest decline of the segments reflected,dropping by 6.1 percent, to € 527,0 million at MSP. All the other segments, with the exception ofEnvelopes, showed a minor decline. The Envelope market remained stable at a value of € 380,0million at MSP. The Greeting Cards segment accounted for a value of € 624,0 million at retail sellingprice (RSP), (source: Datamonitor). According to Euromonitor, the Paper-based products market inGermany grew by 2.9 percent to a value of € 879 million in 2002.United Kingdom Figure 3.4: The British Stationery market:The United Kingdom is the second stationery Segmentation, % Share, by value, 2002market in size, accounting for 23 percent of the Presentationconsumption of the reviewed countries. As in & PlanningGermany, the British stationery market was materialsaffected by the weak economy. In 2002, the Envelopes Office & 12.0%British stationery market declined by 0.3 percent 19.6% Deskrepresenting a value of € 2,250 million at MSP. accessories 9.0% Paper basedOf the different stationery segments, the Writing products& Drawing Instrument market performed the Storage & 4.7%worst, dropping by 3.7 percent. The remaining Filing productsstationery market segments remained relatively 11.6%stable, only developing marginally. A note mustbe made concerning the commercial envelopes Writing & Officemarket, which accounts for a value of € 441,0 Drawing papermillion at MSP. This puts the British envelopes Instruments 29.4% 13.7%market well ahead of the German market. TheGreeting Cards market shows a similar picture.According to Datamonitor, the British greetings Source: MPA International 16
  18. 18. card market is worth approximately € 1,700 million at retail selling price (RSP), which puts the Britishgreetings card market well ahead of the France and even the German market.The British paper-based products market grew 3.5 percent to a value of € 526 million, according toEuromonitor.FranceFrance is the third largest market; accounting for17 percent of the consumption of the reviewed Figure 3.5: The French Stationery market:countries. Like Germany, cheap imports and the Segmentation, % Share, by value, 2002rising share of discounters, hypermarkets and Presentationsuperstores have put increasing pressure on & Planningprices in the France stationery market. In 2002, Office & materials Envelopesthe French stationery market grew by 1.6 Desk 10.0% 19.2%percent largely due to the positive developments accessoriesin the segment Office Paper. In 2002, the Office 8.6%Paper market grew by 3.9 percent to a value of € Storage & Paper based498,5 million at MSP. In 2002, the value of the Filing productstotal French stationery market amounted to € products 5.5%1,651 million at MSP. 10.5%In 2002, the Storage & Filing market increased Writing &by 2.1 percent to € 173,5 million at MSP. The Drawing OfficeFrench Writing & Drawing Instrument market Instruments paperincreased by 0.6 percent. This can be explained 16.1% 30.2%by the increasing demand for fashionablewriting instruments, which countered the Source: MPA Internationalincreasing penetration of PC’s and the Internet,(source: Datamonitor). The other marketsdeveloped only marginally.According to Euromonitor, the Greeting Card sector is relatively underdeveloped in France, incomparison with the United Kingdom. In 2002, the French greeting card market accounted for a valueof € 607,0 million, which is slightly lower than the German market, (Source: Datamonitor).Italy Figure 3.6: The Italian Stationery market:Like the other markets highlighted, the Segmentation, % Share, by value, 2002development of the Italian stationery market isvery marginal. In 2002, the market grew by 0.8 Presentationpercent to a value of € 1,083 million at MSP. & PlanningThe Italian stationery market is becoming materials Envelopesincreasingly competitive, mainly caused by the Paper based 12.9% 10.2%high number of domestic manufacturers and Office & productsmultinationals present in the Italian market. Desk 6.5% accessories 10.1%As in Germany, the office paper market was thestar performer in 2002, growing by 4.0 percentto a value of € 308,5 million at MSP. The Storage & OfficePresentation and Planning Materials market Filing paper productsgrew by 2.6 percent to € 140,0 million at MSP. 28.5% 14.0%The Writing & Drawing Instrument market, Writing &relatively important, accounted for 17.8 percent Drawingof the Italian stationery market. In 2002, it grew Instrumentsby 1.6 percent to a value of € 192.5 million at 17.8%MSP. The Office & Desk Accessories market Source: MPA International 17
  19. 19. grew by 1.9 percent to a value of € 109,5 million at MSP.Another notable development concerns the Envelopes market, which dropped by 8.3 percent to € 110million at MSP. Regarding the Greeting Card market, no information is available.Spain Figure 3.7: The Spanish Stationery market:The Spanish stationery market was the star Segmentation, % Share, by value, 2002performer of the countries highlighted in this Presentationsurvey. In 2002, the Spanish stationery market & Planninggrew by 3.3 percent to an amount of € 964 million materials Envelopesat MSP. According to MPA International, the 13.7% 12.0% Paper basedSpanish stationery has not been affected by the Office & productsweak economy as much as the countries in the Desk 4.6%Northern part of Europe. This was partly due to accessoriesthe lower maturity of some of the stationery 9.4%product markets. Storage & Filing OfficeOf the stationery segments highlighted, the products paperPresentation & Planning Materials market was the 13.5% 31.9%top performer in Spain, and increased by 9.1 Writing &percent to an amount of € 132,0 million at MSP. DrawingAnother fast growing market was the Office Paper Instrumentsmarket, growing by 6.8 percent to a value of € 15.0%307,5 million at MSP. Source: MPA InternationalThe Paper-based products market dropped by 6.4 percent to € 33,1 million at MSP, this can beexplained by the ongoing computerization in Spain, partly caused by the high priority ICTdevelopment has within the Spanish government. The Storage & Filing Products market and Officeand Desk Accessories market grew respectively by 3.6 and 3.4 percent. Information concerning theGreeting Card market is not available.BeneluxThe Benelux stationery market is the smallest Figure 3.8: The Benelux Stationery market:stationery market distinguished in this survey, the Segmentation, % Share, by value, 2002market accounts for only 9 percent of the Presentationconsumption of the reviewed countries. Like most & Planning Office & materialsEuropean countries, the Benelux economy was Envelopes Desk 11.0%strongly affected by the global economic 18.1% accessoriesdownturn. However, despite this development, the 8.3%stationery market which increased by a small 1.1 Paper basedpercent in 2002, reached a value of € 871 million Storage & productsat MSP. Filing 4.0% productsLike France, the growing consumption of office 10.0%paper accounted for the major part of the growth. Writing &In 2002, this market grew by 3.8 percent. Other Drawing Officemarkets which increased in 2002 were the Office Instruments paper& Desk Accessories market and the Presentation 14.5% 34.1%& Planning market, both however, only growingmarginally. The Writing & Drawing Instrumentmarket, together with the Paper-based products Source: MPA Internationalmarket, showed the biggest decline, dropping by1.6 and 1.4 percent respectively. 18
  20. 20. According to Euromonitor, the Dutch and Belgium Paper-based product markets grew by respectively5.3 and 3.0 percent, to a value of € 102,5 and € 72,1 million.Western-Europe versus Eastern-EuropeIn this section we will discuss the differences between the Western European and Eastern Europeanstationery markets. Because information on the Eastern European stationery market is not richlyavailable, we will only give some highlights concerning these markets. In this section we willtherefore only note developments concerning the stationery markets of Poland, Czech Republic,Hungary and Slovakia. They, however, can be used as an indication for the other Eastern Europeancountries. In figure 3.9 an overview of the difference between the Western European and EasternEuropean markets is reflected. It concerns an accumulation of the private consumption of bothpersonal stationery as well as the writing instruments; office consumption is not reflected in thefigures. Therefore extreme care must be taken when comparing these figures with the MPAInternational data.Because the Western European stationery market is a reasonably steady and mature market, the rivalryamongst the market players like distributors and manufacturers is becoming increasingly fierce.Expanding into the Eastern European markets offers the chance to extend their businesses. Theaccession of these countries to the European Union and their massive growth potential makes thesemarkets even more attractive. Many Western companies have entered Eastern Europe to benefit fromthese developments. Office Depot, for example, has opened stores in both Poland and Hungary. As amanufacturing base the Eastern European countries are also very attractive for West Europeancompanies (see also chapter 4).Figure 3.9: Western and Eastern European Stationery market: relative attractiveness based on € consumption of personal stationery and writing instruments 25% Czech Republic 20% Hungary % growth 2002 15% Slovakia Norway 10% Netherlands France Sweden Poland 5% Finland Belgium United Kingdom Germany 0% 0% 20% 40% 60% 80% -5% % growth 1998 - 2002 Circle size based on Slovakia stationery market € 29,4 million Manufacturer selling price, 2002 German stationery market € 1,7 billion Source: EuromonitorAccording to publications of Office Products International, the Eastern European stationery market isin a growing phase. As can be seen in the figure 3.9, the four Eastern European countries Poland,Hungary, the Czech Republic, and Slovakia all show considerable growth, whereas the WesternEuropean countries all show much smaller growth. Especially the stationery market in the Czech 19
  21. 21. Republic grew by gigantic proportions. In 2002, this market grew more 22 percent and between 1998and 2002, the market almost doubled in size. The size of these Eastern European markets however,remains quite small in comparison with the markets in Western Europe. The Slovakia stationerymarket accounts for a value of € 29,4 million, whereas the German market accounts for a value of €1,703 million.3.2 Market SegmentationThis is divided into two sections. The first section, paragraph 3.2.1 will highlight the developments inthe different product groups discussed in Chapter 1. The figures given in this paragraph are based onresearch by MPA International. These figures, however, exclude some stationery products like forexample calendars, diaries and artistic materials. Therefore, some additional information on theseproducts is giving. Paragraph 3.2.2 gives a segmentation by the different users groupings which can bedistinguished in the stationery market, namely professional business users, schools & universities,SoHo users and private users. In this paragraph the distinct characteristics and preferences regardingthese different product groups will be discussed.3.2.1 Market segmentation by productIn the stationery market we can make a general distinction between two types of stationeries, namelycommodity and specialty stationeries. Commodities are generally products that customers perceive tobe exactly the same, brand awareness and preference are generally low. Envelopes, paper, notebooks,storage & filing products can, for example, be regarded as commodities. According to research byMcKinsey, the product price, consistent level of product quality, service quality and on-time deliveryare the most important purchase criteria in this segment. In the case of specialty stationery, the userregards the product as special and is prepared to go through substantial trouble to obtain it. Quality,branding and design are important purchasing criteria for these products. Specialty products must beable to satisfy consumer status. In case of the stationery market, special luxurious writing instruments,calendars and leather diaries can be regarded as specialties. This specialty segment offers importantpotential for manufacturers in developing countries. Specially crafted, handmade products like, forexample, leather organisers and writing pad covers, are very popular in the EU. Stationery given awayas a gift makes up an important share of the specialty segment.In the following section of this chapter we will discuss the products highlighted in Chapter 1EnvelopesThe Envelopes market in the reviewed countries dropped 1 percent and accounts for a value of € 1,512million at MSP in 2002. The increasing use of e-mail and the internet and a decline in writing letters ispressuring the envelopes usage, thus to MPA International. Despite this pressure, the Envelope marketis estimated to grow slightly to approximately € 1,590 million in 2006, indicating a growth ofapproximately 5 percent, (Source: MPA International). According to the European envelopemanufacturers association, the per capita consumption of envelopes in Western Europe is running ataround 300 envelopes per year. In Eastern Europe the consumption is much lower, Poland for exampleconsumes around 60 envelopes per capita per annum.There are numerous different types and sizes of envelopes. Most popular are the window envelopesand self-seal envelopes. The latter includes a protective peel-off strip over the adhesive flap. Ingeneral, the commercial envelopes market is increasingly being standardized mainly to assistingnational postal services in the automated selection and sorting machinery, (source: Euromonitor.Special ISO norms exist on the size of envelopes, namely the ISO 216 Series C. In some countriesthere are however different sizes of envelopes in circulation, mainly in France and the UnitedKingdom. The weight and quality of the paper used making the envelopes vary per market, thusaffecting pricing. Because envelopes are generally considered to be a commodity, private- and whitelabel products play a significant role in this market segment. 20
  22. 22. Paper-based productsThis segment includes a wide variety of products; it is therefore difficult to give precise statisticalinformation concerning the market size. According to MPA International, the paper-based productsmarket is worth approximately € 473,0 million at MSP. This figure includes the following products:exercise books, memo refill pads, duplicate and triplicate books, manuscript books and analysis books.The segmentation of the market based on MPA International statistics is reflected in figure 3.10. Ascan be seen, exercise books make up more than a third of the market Figure 3.10: The Paper based market, Segmentation,In figure 3.11 you can find the consumption of % Share, by value, 2002paper-based products, according to Euromonitor.The Euromonitor statistics include all paper items Analysislike writing pads, printing paper, transparents, booksenvelopes, notebooks, account books and diaries. 11% ExerciseOffice supplies are excluded from the Euromonitor M anuscript booksstatistics. As can be seen, Germany is by far the books 35%largest market for paper-based product. 14%Unfortunately, information regarding Italy andSpain is not available. Duplicate & TriplicateAccording to MPA International, the paper-based booksmarket is forecast to decline because of the 9%maturity of the market and the increasing M emo &computerization trends. The paper-based products Refill padsmarket is being subjected to increased competition 31%from products like the internet and cd-roms,(Source: Euromonitor. This developmentespecially affects the duplicate and triplicate book Source: MPA Internationalsegments, (Source: MPA International.Because the educational market is an important segment in this market, the declining schoolpopulation in most European countries has also contributed to negative forecasts of this market. MPAInternational estimates that this market will decline by about 5 percent towards 2006. Because lowprices are a prime purchasing consideration in this market, private-label products, often imported fromAsia, are gaining market share, mainly in the exercise and correspondence book market.In some niches, quality is also an important consideration. The educational market, for example,requires the opacity of a page to be sufficient to permit writing on both sides of the paper, according toEuromonitor. Other interesting stationery products, which are not reflected in the figures of MPAInternational, are wrapping paper, diaries, organisers and photo albums. In these segments the pricesare under pressure because of the increasing importance of private label.An important threat to paper-based products is the development of information technology products,like electronic organisers and other gadgets, in which data can be stored electronically. However,despite this threat, the demand for these products is expected to grow. 21
  23. 23. Figure 3.11 Consumer expenditures of paper-based products (per year in €), in the EU, 2000-2002 Slovakia 17.0 2000 Hungary 50.3 2001 Czech Republic 55.0 2002 Poland 57.0 Finland 14.9 Norway 27.0 Sweden 34.0 Belgium 72.1 Netherlands 102.5 Switzerland 120.8 France 215.3 United Kingdom 526.2 Germany 879.3 - 100 200 300 400 500 600 700 800 900 1,000 Source: EuromonitorWriting & Drawing InstrumentsIn 2002, the consumption of Writing & Drawing Instruments in the reviewed countries represented avalue of almost € 1,420 million at MSP. According to MPA International, the Writing & DrawingInstrument market is a mature market which is largely driven by innovation and new productintroduction. Manufacturers are coming up with new, unusual design shapes and colours to boost theirsales. Due to this, the market is forecast to grow very little in the near future. According to estimatesmade by MPA International, the European Writing & Drawing Instrument market will represent avalue of 1,456 million at MSP in 2006, which indicates an increase of only 2.5 percent compared totoday’s market size.According to Paperworld, the Writing & Figure 3.12: The Writing & Drawing instrument market,Drawing Instrument market is becoming more Segmentation, % Share, by value, 2002polarised, in particular the writing instrumentsmarket. The low-price segment is sufferingfrom increasing price pressure. Due to cheap Refills Other Pencilsimports, gel-ink pens and rollerballs are under 5% Correction 4% 14%increasing price pressure. Products in the aidshigher segments are following the high quality 9%trend. In this segment, handmade and Highlightersunconventional materials like amber and 5% Ballpointsleather are expected to be very popular, M arkers 20%(Source: Paperworld). 8% Fibre &In general, the Writing Instrument market is plastic tip pensdominated by international brands, like Fountain 7% Rollerballs Gel inkSanford and Bic. However, low-priced private 7% pens penslabel products, deriving mainly from Asia, are 8% 13%increasingly making inroads into the Europeanmarket. This development has, in turn, led toincreasing pressure on existing price levels. Source: MPA InternationalThis is particularly evident in the commodity 22
  24. 24. segment of the Writing & Drawing Instruments market.As can be seen in figure 3.12, ballpoints and pencils together account for the majority of the market.Also fountain pens remain popular, when it seemed they were likely to be replaced by the ballpoint;this is partly due to the popularity of these pens as a status symbol and a fashion accessory. Thecategory ”Others” includes erasers (2%), pencils sharpeners (1%) and rulers (1%).Nowadays, writing instruments made of translucent materials are very popular. Ergonomic design isalso a major consideration for writing instruments, according to TDC trade. Soft holding zones, angledwriting points and gel technology offer users a high degree of comfort. Note that these trends can varyfrom year-to-year.Other interesting stationery items, which are not reflected in the Writing & Drawing Instrumentfigures of MPA International are the artistic materials, with include brushes, paint, crayons, pastel,glues and other sorts of products which can be used for artistic and hobby purposes (see also § 3.2.2.).The lion’s share of these products is made for school-age children, with the remainder going toprofessional users. According to Euromonitor, the artists’ material market in France is approximately€ 21.1 million. Unfortunately information regarding other European markets is not available.Writing & drawing instruments are sold in a number of ways. Instruments designed for private use oras personal gifts are generally purchased in the retail market. Alternatively, writing & drawinginstruments may be bought by businesses for employees use or to be given away either as promotionalgifts or as employee incentives. However, they are more often regarded as giveaways than simply aswriting instruments for the promotion market.Storage & Filing products Figure 3.13: The Storage & Filing product market,In 2002, the consumption of storage & filing Segmentation, % Share, by value, 2002products in the reviewed counties accounts forapproximately € 1,192 million at MSP. According Indexes &to MPA International, this market is relatively Dividers M anila filesstable and mature. The private/own label Archival 10% 22%penetration in this segment is high and is expected filingto increase; explained by the fact that these 10%products are generally considered to becommodities. Ring binders 11% Soft PlasticSales in this sector are greatly related to office filespaper demand. Digital storage of data is 14% Suspensionconsidered to be the main threat in this sector. filesHowever, the use of technologies like computers 11% Lever archrather boosts sales of office paper than the reverse. filesAccording to MPA International, this market is 22%expected to grow to be worth € 1,271 million atMSP in 2006. The increasing SoHo sector (see §3.2.2) is also an important sales driver in this Source: MPA Internationalsector.Although this segment is rather stable and considered to be a market with little innovation, there is onenotable development. Due to the increasing use of these products in the private and SoHo sector, thereis a trend towards more brightly-coloured products and finishes, according to MPA International. 23
  25. 25. Office & Desk accessoriesThe market for Office & Desk Accessories in the Figure 3.14: The Office & Desk Accessories market, Segmentation, % Share, by value, 2002reviewed countries accounted for a value of € 827million at MSP in 2002. This segment includes Rubberboth commodities as well specialty stationeries. bands, Pins,As can be seen in figure 3.14, paper & card Scissors Clips, etc. Waste binsadhesive account for almost a quarter of this 4% 2% Adhesive 4% Punchesmarket. According to MPA International, the tapes 5%Office & Desk Accessories market is a mature Letter trays 21%market, where the volume demand is stable. 6%Innovation and product styling are the two main Guillotinesmarket drivers. Price competition is increasing due & Trimmersto the increasing share of private and white label 6%products and imported products deriving from Paper & Staplers,low-wage countries. The Office & Desk Card Staples &Accessories market is forecast to grow to a value adhesives Stapleextracof € 872 million at MSP in 2006, (Source: MPA 22% tors RepositionaInternational). 13% ble notes 17%The increasing SoHo sector triggers the demandfor more fashionable office & desk accessories. Source: MPA InternationalThe trends in colours and design of these morefashionable products mainly derive from the homedecoration market.The premium items in this segment are often designed for professional use and often have a moreclassical design and more traditional colours.Presentation & Planning materials Figure 3.15: The Presentation & Planning materialsThis segment includes planning boards, wall market, Segmentation, % Share, by value,boards, white boards, flipcharts & accessories, 2002calendars and year planners. According to MPA PlanningInternational, the consumption of presentation & Flipcharts boards &planning materials in the reviewed markets & Yearaccounts for approximately € 1,343 million at Accessories plannerMSP in 2002, indicating a decline of 0.9 percent 3% 6%with the preceding year. This decline is mainly Wallboardsdue to a weak economic climate which affected Stock 7%business confidence and hence investments in diarriesthese sort of items. Professional users are the main 49%purchasers of these products, next to schools.According to MPA International, the increasingtrend towards more business presentations is the Stockmain growth driver in this segment. It is forecast calendersthat this market will grow to a value of 35%approximately € 1,440 million in 2006, indicatinga growth of 8.2 percent over the figures for 2002. Source: MPA InternationalThe development towards electronic products like beamers used in business presentations isconsidered to be the main threat. This development in turn offers a chance for manufacturers ofscreens, which could benefit from the development towards more electronic products. According toMPA International, these products are often used in tandem with the traditional presentation products.Like many other stationery markets, the presentation material sector is increasingly being penetratedby cheaper own-label products, often imported from low-wage countries in Asia and Eastern Europe.This in turn has driven down average market prices. 24
  26. 26. Greeting CardsAccording to Datamonitor, the European Greeting Cards market was worth € 5,100 million at RSP in2002. As the European market continues to mature, pricing is becoming more important. According toEuromonitor, the internet is a fierce competitor to the greeting card industry. E-cards and E-mail aregaining in popularity in comparison with the traditional cards, due to their convenience and speed.However, despite the increasing popularity of the internet, greeting cards are still popular in Europe.This popularity is mainly due to innovative power of the card industry. According to Euromonitor,greeting card publishers have created many new markets, expanding on the concept of Christmas, NewYear, Valentine’s Day, birthdays, graduations, changes of address, marriages and many otheroccasions, thereby contributing to this success. At the premium-end of the market there is anincreasing demand for more sophisticated printing techniques and handmade cards, (Source:Euromonitor). Nowadays, cards are available in a lot of different shops, mostly marketed as cheapimpulse purchases to boost sales.According to a study by TNS Impulse, a British research agency, the greeting card market can bedivided into three main groups: everyday cards, Christmas/ New Year cards and seasonal cards. Theeveryday cards market accounts for 59.6 percent of the market, and the largest card giving occasionsare birthdays, anniversaries, Get Well cards, Friendship cards, and Sympathy cards. Christmas andNew Year cards account for 27.2 percent of the market. The remaining share is made up by theseasonal card market. In this market Valentine’s Day is a leading card-giving occasion, otheroccasions are Mother’s Day, Father’s Day and Easter.The most important trade fair for greeting cards is the Birmingham Springfair in the United Kingdom.Bags & BriefcasesThis group consists of products like backpacks, shoulder bags, bags, mini backpacks for youngerchildren and briefcases made of materials like leather, polyester, nylon, PVC, PU and canvas.According to the Hong Kong Trade Development Council (TDC) many bags & briefcases are movingaway from black towards more fashionable bright and funky colours. In addition, new fabrics andmaterials, like micro-fleece grid fabric, crinkle nylon/polyester, suede, skin etc., are being introduced.Unfortunately, no quantitative information is available regarding the bags and briefcases market;therefore only some qualitative information will be given.With the trend of globalization and e-commerce, people are increasingly working out from the office,according to the Hong Kong Trade Development Council (TDC). Because of this development, bagsfor carrying laptops and computer trolleys are increasingly in demand. In addition, highly-compartmentalized briefcases are designed to act as mobile offices, to assist doing business out of theoffice, with ease and more convenience, (Source: TDC trade).As can be seen in paragraph 3.3, women are becoming increasingly important for the Europeanworkforce. To benefit from this development, an increasing number of bag & briefcase manufacturersare designing and producing lines specially adapted for women. In addition, some new lines targetedat women feature special sections for toiletries, cosmetics, shoes and other items that enable femaletravelers to travel more conveniently.The health issue is becoming increasingly important, especially in the bag market for children.According to research, children in Europe have to carry heavy school bags, risking back pain andspinal disorders. Ergonomics is an import issue. New ergonomic designs redistribute the weight of thebag so that less stress will be placed on the users back, arms and shoulders. Bags designed for childrencome in a wide variety of styles with bright colours. Licensing is also often used in the childrensegment. Bags featuring, for example, movie characters like Winnie the Pooh, Mickey Mouse,Paddington Bear and more recently Harry Potter and Bob the Builder, are very popular with childrenand young school-goers. 25
  27. 27. Fashion, regarding style and colours in the bags & briefcases market, is generally closely aligned withthe trend in the fashion industry. This especially applies to the handbag segment, where leadingmanufacturers like Louis Vuitton, Salvatore Ferragamo, Gucci, Prada and, Miu Miu are the trend-setters.The weight of the product is also important; since most people prefer lighter weight bags & briefcases.Therefore production skills developed in other lightweight industries such as clothes, plastic, etc. areoften used. More information regarding leather bags & briefcases can be found in the CBI survey“leather goods”.3.2.2 Segmentation by userIn the preceding section we have discussed the segmentation by product. In this paragraph we willmake a distinction between the different segments in the stationery market. General we can distinguishbetween three main market segments, i.e.: • Professional (business) users, • Small office and Home office users (the so called SoHo) • Private users.The professional user segment includes medium-size offices with 10 -50 employees and large officeswith more than 50 employees. The SoHo segment includes small offices with from 1- 10 employeesand home offices employing 1 to 3 people. This segment also includes teleworkers working for anemployer, or on a freelance basis, from home. The private users, includes stationery sold for domesticuse and includes sub-segments like children, teens, students, etc.According to a Euromonitor study of the French market, business users (including SoHo users)account for approximately 54 percent of total stationery sales (excl. greeting cards). The publicadministrations account for 17 percent and schools and private users account for approximately 29percent of the stationery sales. Information concerning the other markets is not available.Professional usersAccording to Eurostat there were 11,5 million enterprises active in the EU, over 85 percent of thesecompanies have less than 10 employees of which the vast majority is found in the service industry.These companies employ 25 percent of the total EU workforce. Large companies with more than 250employees only account for 0.5 percent of the companies in EU, but they employ 30 percent of the EUworkforce. These larger companies are mainly situated in the industry sector.Figure 3.16: Number of enterprises and persons in the EU employed broken down by size-class, 2000 (% share of total) 50-249 250+ pers. pers. 250+ 1-9 pers. 10-49 employed employed pers. employed pers. 2.2% 0.5% employed 25.1% employed 37.0% 11.4% 10-49 pers. 50-249 employed 1-9 pers. pers. 20.4% employed Employed 85.9% 17.6% 26