After reading this report, the reader will be able to:
The global office supplies market is estimated to grow to $247 billion by 2020. Items in the office supplies' market include paper-based products, storage and equipment, and writing and marketing instruments. The report covers a detailed analysis of the office supplies market. It also covers non-core office supplies such as kitchen supplies, cleaning supplies, office furniture, workwear safety, computer consumables/accessories, etc.
The report's scope includes the matured geographies of North Americas and Europe, and the growth markets of LATAM, APAC, and MEA. It provides a detailed study of each market and evaluates their growth potential. Porter's Five Forces Framework is used to analyze both developed as well as emerging markets.
The report analyses the reasons for the declining profit margins of the suppliers, the resulting price competition they are facing and hence, the various strategies they are implementing to overcome these challenges. The reader will find detailed profiles of global suppliers and their SWOT analysis in this report.
In order to analyze the competition in this market, the report provides cost structure analysis with detailed spend categorization and benchmarks that will assist in optimal decision-making. To understand the evolving nature of the market, the report reviews the engagement models at local and global level, and their pros and cons, e-commerce business models, pricing models (matrix pricing vs single discount) and impact of contract length. On the basis of the exhaustive review of the above parameters, the report provides a host of cost-saving strategies, negotiation levers and questions for optimal results.
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.
Category Intelligence on Office Supplies covers the following
Large suppliers such as Staples and Office Depot 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 recent years from these types of products and significantly increased the number of similar products being launched. Source: Beroe Analysis
Staples has already shifted its investments to its online portal to make online ordering easier and more 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.
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.
Focus on education, increasing literacy rates and increasing job opportunities, coupled with MNCs increasing their geographical capabilities across the globe, 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.).
Buyers prefer procurement through e-auctions, as they get clear visibility and can access supplier capabilities. Along with Global suppliers, even the local suppliers are focusing on participating in e-auctions as it gives them the scope to bid on and participate in huge tenders.
Currently, the supply market has local and regional players who dominate the market. The global suppliers have entered the LATAM market only recently. In 2015, Office Depot entered LATAM as Office Depot de Mexico, while Lyreco entered the Mexican market through a partnership with Principado. LATAM has witnessed the entrance of MNCs, the US-based firms in countries, such as Brazil, Colombia, and Mexico. The suppliers, in order to cater to the needs of the MNC's office supplies across the country, are looking for M&As. In 2015, Office Depot bought a 51 percent stake in Grupo Pisa, which is a local group of LATAM wholesale suppliers.
Suppliers are increasingly leveraging various online media formats, including mobile-based applications and social networking sites, to expand their digital presence. Officeworks invests a significant amount of resources in their social media engagements, with the objective of elevating everyday products into things that people like and share.
Raw materials are one of the major parts of the cost structure for office supplies. Therefore, any increase or decrease in the prices of raw materials will affect the cost of office supplies products. Major raw materials used in office supplies include:
Given the changing industry dynamics, the possibility of changes in supplier and changing paper prices, a contract length of three years in matured markets and a contract length of one to two years while engaging with the local suppliers in emerging markets is suggested. This, combined with structured continuous supplier management would ensure better results from the contact.