The Time for Personalisation

1
The Time for Personalisation! T
he Synopsis - Market Review 2005 Trends 2006 and
Beyond w w w . p r o f i c i e n c y g r o u p
. c o m (Full report available at 500
VAT) peter_at_proficiency2020.com

2
The Time for Personalisation!

• MEGATRENDS 2006-2010
• Re-humanisation of customer service
• 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
• SMB(SME)s are the fastest growing market majority

3
The Time for Personalisation!

• The BIG TRENDS in 2005 continuing in 2006
• Call Centre CRUNCH the welcome collapse
• 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 products
• Lightness colour, weight, naturalness
• Women the key decision makers
• Mature users The 40-60 age group booming

4
The Return of the Differentiators

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

5
The Collapse of C Power

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

6
New Developments 2006

• The Urge to Merge to surge
• Cash available/Rising stock market
• Marketing set to BOOM
• Especially Web and Direct/email
• Ecommerce will accelerate
• Broadband/SMEs now comfortable

7
UK Office Market 2005by Product

Bn Mix Growth Office Supplies
2.0 31 -5.0 Office Furniture
1.1 17 3.0
Computer Consumables 2.7 42
4.0 Visual Presentation 0.6
10 0 TOTAL 6.4 100
-0.8 s o u r c e p r o f i c i e n c y
i n d e x
8
UK Office Market 2005by 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 0.94 3.15 0.92 0.49 0.52 0.38 6.40
Mix 14.7 49.2 14.4 7.6 8.1 6.0 100
Growth 4 -3 -3 -2 4 -5 -0.8
9
Office Market Report - 2005

• US economy 4 - rising strongly again
• UK economy 2 - prospects good
• Office Market - prospects mixed
• New Knowledge Industries stronger
• UK Market 6.4Bn down 0.8
• Office supplies down to 31 of total mix
• Computer consumables now 42 mix
• FM supplies market dealers slow to grasp
• s o u r c e p r o f i c i e n c y i n d e x

10
2005 Global Market LeadersTotal Sales

• Market leaders
• Staples - 16Bn (US 88)
• Office Depot - 14Bn (US 78)
• Office Max - 9Bn (US 100)
• Corporate Express - 5Bn (US 66)

s o u r c e p r o f i c i e n c y i n d e x
11
Global Delivery Sales

• Market Leaders
• Office Depot - 7.6Bn (58 US)
• Staples - 6.4Bn (88 US)
• Corporate Express 5.6Bn (66 US)
• Office Max 4.8Bn (100)
• Lyreco 2.4Bn (0 US)

• s o u r c e p r o f i c i e n c y i n d e x

12
Competitive LandscapeUK 2005 Market shares

• Contract Stationers 14
• Lyreco/O2O/OSG stronger
• Independents. 49
• Top 30 gt 5m stronger
• Retail/Mail Order - up.. 22
• 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

13
Contract Stationers/MOrder- Euro Leaders 2005
Sales

• Office Depot - Sales 3.0Bn
• (includes Viking/Guilbert)
• Lyreco independent 2.4Bn
• Corporate Express 1.0Bn
• Staples Stores/MO 2.0Bn

• s o u r c e p r o f i c i e n c y i n d e x

14
Contract stationers UK Sales 2005

• Office Depot - 280M slowing
• Lyreco - 250M rising fast
• Corporate Express Recovering 110M
• O2O/Banner 7 growth - 150M
• Oyez Straker acquiring - 155M sales

• s o u r c e p r o f i c i e n c y i n d e x

15
Dealer Groups USA

• Tri Mega 450 members - 2.2Bn sales
• (inc DSC 44 members)
• IS group 340 members - 1.2Bn sales
• DPCG 20members - 400m sales
• Office Partners 150 members - 300m

• s o u r c e p r o f i c i e n c y i n d e x

16
Dealer Groups - Europe

• Branion (Germany) 600 mbrs - 1Bn
• Buroring(Gmy) 370 - 800M
• Buro Plus (Fr) 149 - 600M
• Majuscule (Fr) 200 - 350M
• Calipage(Fr) 300 - 420M
• Plein Ciel (Fr) 215 - 250M
• Integra (UK) 400 - 1250M

s o u r c e p r o f i c i e n c y i n d e x
17
UK Dealer Groups 2005 Sales

• Integra 400 members - 700M
• Office Friendly 144 members - 280M
• Office Club 300 members - 240M
• OfficePoint 200 members - 150M
• Advantia 46 members - 120M
• Superstat 120 members - 120M
• NEMO 54 members - 105M
• United 40 members - 75M
• OfficeStar 40 members - 75M
• Office Biz 80 members - 40M

s o u r c e p r o f i c i e n c y i n d e x
18
Global IT/OP Wholesalers

• Ingram Micro 28Bn
• Tech Data 20Bn
• Synnex 5Bn (US only)___________________________
• United Stationers 4.3Bn (US only)
• SPRichards 1.7Bn (US only)
• Spicers 900M (Euro)
• Kingfield 400M (UK only)
• source p r o f I c I e n c y i n
  d e x

19
WHATS THEBIGCHANGEi n t h eOFFICEMARKET
20
The BIG SHIFT to theN E W E C O N O M Y
Industry Shift PROCESS KNOWLEDGE
21
The BIG SHIFT to theN E W E C O N O M Y
Industry Shift PROCESS KNOWLEDGE
22
T H E OFFICEi s t h eENGINEo f t h e
N E WECONOMY
23
USA v UKEconomy/Office Comparison
US v UK
Population x 5.0
Economy x 5.6
Office Market spend x 8.6
Technology/Education Investment x 26
Productivity/person 14
24
US vs UK Market Comparisons 2005
US UK US v UK
Factor Population M 298 60 x
5.0 Economy/GDP Bn 13,180 2,340 x
5.6 Productivity/Head 44,180
38,860 x 1.14 Tech Investment Bn
208 8.0 x 26 Office Products Bn
111 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
25
Office Products/Services
From OVERHEAD to PRODUCTIVITY TOOL

• FANTASTIC GROWTH OPPORTUNITY
• as per USA model

26
The Power of Personalisation!

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

27
Market Analysis

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

peter_at_proficiency2020.com
w w w . p r o f i c i e n c y g r o u p . c o m