Office Supplies in Europe Market Description
The current market size of the office supplies industry in Europe is $47 billion and is expected to grow at a CAGR of 2-3 percent annually till 2021. Major end-user industries are educational institutes and firms/offices across all industries. Locations of high maturity of the office supplies market are UK, France, and Germany while low maturity areas are Central and Eastern Europe. Tier-1 suppliers such as Staples Inc., Office Depot, Lyreco hold 70–80 percent of the global market share and have a good presence in Belgium, UK, Germany, Switzerland, France, and Italy.
The report provides a comprehensive analysis of the market outlook for office supplies in Europe, examining current trends and market growth potential. The report presents an overview of the drivers and constraints of the global office supplies industry and highlights innovative ways of procuring office supplies. The functioning of consortium-based purchase of office supplies is discussed in the report and the implementation of consortium-based buying. The report includes a Porter’s Five Forces Analysis on the office supplies market in Europe and examines specific KPIs and SLAs. The report also includes a supplier analysis with global supplier profiling and SWOT analysis.
Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.
Regional Market Outlook on Office Supplies in Europe
- The office supplies market is highly fragmented and the maturity level of buyers and suppliers is very low outside Europe and North America
- Suppliers in this industry have declining profit margins and are facing tight price competition. Digitization has led to many retail store closures of office supplies suppliers over the past five years. Price has become a key deciding factor, followed by geographic coverage and supply assurance
- Suppliers are also improving their supply capability by adding more products and investing more in their online portals, and are also trying to increase their geographical scope
Global Office Supplies Industry: Drivers and Constraints
Emphasis on self-branded products: Large suppliers, such as Staples and Office Depot, still bet on their self-branded products, as they have higher margins than other branded products. Staples, for instance, has generated 30 percent of its revenue in the recent years from these types of products and significantly increased the number of similar products being launched
Era of online ordering: These days, buyers prefer to order online, as it saves time and energy. Staples has already shifted its investments in its online portal to make online ordering more easy and convenient for its customers. Amazon Business and eBay have entered the office supplies market, as office supplies category fits into their existing sets of products offered
- Increasing service capabilities of suppliers: Suppliers in this industry are expanding their product portfolio by including non-core office supplies, such as janitorial supplies, technical equipment, and break room supplies in their product list
- Increasing number of offices and job opportunities, mainly in the emerging markets: Focus on education, increasing literacy rates and increasing job opportunities, coupled with MNCs increasing their geographical capabilities across the globe (especially in the emerging markets), are the major drivers of the demand for office supplies products (e.g. the Digital India Campaign in India, and industrial development in LATAM, mainly in Mexico, Brazil, etc.)
- e-Auctioning: Buyers prefer procurement through e-auctions, as they get clear visibility and can access supplier capabilities. Global suppliers have the ability to participate in e-auctions, and the local suppliers are also focusing on participating in them, as it gives them the scope to bid on and participate in huge tenders
Decreasing demand for core office products
- The demand for paper-based products (e.g., notebooks, books, diaries, files and folders, letters, and notepads) had been decreasing because of technological advancement, i.e., use of computers, mobile phone, iPads (for communication) and cloud computing/servers
- The level of differentiation between products is very low and hence, the competition is primarily based on pricing. This drives down the profits of the suppliers, leading to exit from the market or being acquired by a larger company, resulting in consolidation