O F F I C E

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O F F I C E MEGATRENDS 2 0 0 5 The Office is
Where You Are! Market Review 2004/ Trends For
2005 w w w . p r o f i c i e n c y 2 0 2 0 . c o
m (Full report available at 500
VAT) peter_at_proficiency2020.com

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The Office is Where You Are!

• MEGATRENDS 2005 - 2010
• Beyond the Paperclip
• From office products to office productivity
• Beyond the Buyer
• Direct Marketing/eMarketing to user-choosers
• Relentless Reseller Brand Growth
• The POWER of Personalisation
• Beyond Manpower
• WOMEN are the Decision Makers
• Beyond the Corporate Market
• SMEs are the Market Majority

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The Office is where you are!

• The BIG TRENDS in 2004 continuing in 2005
• Mobility - the COSMO market
• Wireless from WiFi to WiMAX
• Flexibility in the workplace
• Time is the scarce resource
• Design great looks and functionality
• Experiences matter more than materials
• Lightness colour, weight, naturalness
• Mature users more powerful than youth

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The Return of the Differentiators

• Direct Marketing to Users via ecom
• Design Looks, Functionality,
  Packaging
• Decentralisation - ownership
  management style
• Division beats convergence
• Desire Passionate teams beat cold, remote
  service centres
• Differentiate or Die!

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The Collapse of Consolidation

• Commoditisation low quality, cheap
• products
• Convergence more choice, not less
• Centralisation de-motivates, stifles
  entrepreneurship
• Compliance and Control Freaks crush
• initiative and innovation
• Cold Call Centres cool customers response
• Consolidation Kills!

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New Developments 2005

• Return of the Urge to Merge
• Cash available/Rising stock market
• Advertising set to Boom
• Especially Web and Direct/email
• Ecommerce acceleration
• Broadband/SMEs now comfortable

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UK Office Market 2004by Product

Bn Mix Growth Office Supplies
2.2 34 -5.0 Office Furniture
1.05 16 5.0
Computer Consumables 2.6 41
7.0 Visual Presentation 0.6
9 0 TOTAL 6.45 100
5.7 s o u r c e p r o f i c i e n c y i n
d e x
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UK Office Market 2004by Channel

Retail/Superstores Independent Resellers
Contract Stationers Mail Order - Office
Computer Resellers/MO Direct
TOTAL s o u r
c e p r o f i c i e n c y i n d e x
Bn 0.9 3.2 0.95 0.5 0.5 0.4 6.45
Mix 14 50 15 7 8 6 100
Growth 8 5 4 5 2 0 5.7
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Office Market Report - 2004

• US economy 4 - Strong
• UK economy 3 - Prospects strong
• Office Market - Prospects mixed
• New Knowledge Industries stronger
• UK Market 6.45Bn - Up 5.7
• Office supplies down to 34 of Total Mix
• Computer consumables now 41 mix
• s o u r c e p r o f i c i e n c y i n d e x

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Competitive LandscapeUK 2004 Market shares

• Contract Stationers 15
• Lyreco/O2O/OSG stronger
• Independents. 50
• Top 30 gt 5m stronger
• Retail/Mail Order - up.. 21
• Computer Resellers rising.... 8
• Direct - declining 6
• s o u r c e p r o f i c i e n c y i n d e x

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Contract Stationers- Euro Leaders 2004 Sales

• Office Depot (ex Guilbert/Niceday)
• - Includes Viking Mail Order
• - Sales Eu3.0Bn
• Lyreco independent Eu1.7Bn
• Corporate Express - Eu1.3Bn
• Staples Stores/MO Eu1.8Bn
• Ahrend Mainland only Eu200M

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Contract stationers UK Sales 2004

• Office Depot - 320M slowing
• Lyreco - 275M rising fast
• Corporate Express Recovering 110M
• O2O/Banner 15 growth - 145M
• Oyez Straker acquiring - 135M sales

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UK Dealer Groups Sales 2004

• Integra 500 members - 700M
• Office Club 300 members - 250M
• OfficePoint 250 members - 200M
• United 75 members (exc.OSG)- 150M
• Advantia 50 members - 140M
• Superstat 100 members - 100M
• OfficeStar 40 members - 75M
• NEMO 58 members - 75M
• Office Friendly 50 members - 75M

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WHATS THEBIGCHANGEi n t h eOFFICEMARKET
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The BIG SHIFT to theN E W E C O N O M Y
Industry Shift PROCESS KNOWLEDGE
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The BIG SHIFT to theN E W E C O N O M Y
Industry Shift PROCESS KNOWLEDGE
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T H E OFFICEi s t h eENGINEo f t h e
N E WECONOMY
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USA v UKEconomy/Office Comparison
US v UK
Population x 4.85
Economy x 5.2
Office Market spend x 8.6
Technology/Education Investment x 17
Productivity/person 7
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US vs UK Market Comparisons 2004
US UK US v UK
Factor Population M 296 61 x
4.85 Economy/GDP Bn 12,280 2,350 x
5.2 Productivity/Head 41,530
38,670 x 1.07 Tech Investment Bn
180 7.0 x 26 Office Products Bn
106 12.25 x 8.6 (OP
Supplies, EOS and Furniture exc. FM)
s o u r c e p r o f i c i e n c y i n d e x
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Office Products/Services
From OVERHEAD to PRODUCTIVITY TOOL

• FANTASTIC GROWTH OPPORTUNITY
• as per USA model

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The Office is where you are!

• Are YOU ready for the challenges that lie ahead?
• Women are the market
• Go mobile with new product developmentGo COSMO
• Design office productivity solutions
• Re-focus marketing Be Bold, Be Direct, Be
  Personal, Create Experiences, Be Quick!!
• Differentiate or Die!

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Market Analysis

• Peter J Frost, Proficiency Group
• February 2005
• (Full Report available _at_ 500VAT)

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