Page 16 - BOSS Today Issue 20
P. 16

FM Supplies                                        “Most (53%) UK respondents are
                                                             already buying at least one of
                                                              these four FM product sectors

                                                                             from an OP supplier.”


                        8%
                                                 53%          already buying at least one of   the importance of brands,
           7%                                                 these four FM product sectors   and details not only the key
                                                              from an OP supplier.       proprietary brands that any OP
                                                                 Nevertheless, it is clear that   supplier should offer in these
                                                              there is still much for the OP   product categories, but also the
    12%                                                       channels to go for in future,   acceptability of private label
                                                              since very few respondents are   products. Here, the research
                                                              not interested in buying FM   found major differences
                                                              supplies from an OP supplier.    between product categories
                                                              Furthermore, the research also   (and even sub-categories): in hot
                                                              shows clearly that while many   beverages, for example, only a
                                                              respondents are buying some   small percentage of purchasers
                                                              types of FM supplies from an OP   are prepared to take any brand;
                                                              supplier, they are by no means   however, in first aid and health
                                                              always purchasing all their FM   supplies, many UK buyers are
                                                              requirements from this channel.  happy to take any brand.
                                                                In other words, there are not
                                                              only many other interested   What About The Future?
                                                              potential customers for the OP   Having analysed the present,
                                                              channels to serve, there is also   the report also looks to the
                                                              plenty of scope to sell more FM   future, gathering the views of
           20%                                                products to existing customers.  both end-user purchasers and
                                                                From this perspective, the FM   OP distributors on how the
                                                              molehill does indeed begin to   purchasing of these products
       Figure 2: Interest In Buying FM From A UK OP Supplier
                                                              look like a mountain.      will change. Inevitably, one of
       n Already do this                                                                 the predicted developments
       n I do not do this but I am very interested            What Do OP Channels        is a further shift towards on-
       n I do not do this but I am slightly interested        Need To Do?                line purchasing.  While this
       n I do not do this and I am not interested             For each of the four FM    could be good news for the OP
       n Don't know/refused                          Source: MWA  product sectors, the report   channels (which of course are
                                                              also investigates the key issues   comparatively well-equipped
                                                              required by buyers of these   in this respect), it should not be
                                                              products from their suppliers,   forgotten that – as mentioned
       Overall, this is down to the   products and, of course, only   and shows which requirements    above – there are many other
       improving economy increasing   tend to specialise in one of   have to be met to gain this   competitors already in the market
       both employment and levels   these four sectors. Indeed,   additional business.   that are very capable of taking full
       of business, but for some   the research shows that the OP   The research throws up some   advantage of this trend.
       categories it is also due to   industry is faced with some large   surprises here: while low price   The report also concludes
       changing legislation (for health   and well-resourced competitors   is important – especially for   with an action list of the
       & safety supplies) or a desire   in supplying FM supplies to UK   some product categories – it   considerations that any OP
       by companies to ‘treat’ their   businesses, such as the cash   is nearly always secondary to   distributor must address before
       employees to good quality   & carries, grocery multiples,   considerations of product   entering these markets.
       catering products instead of   industrial supplies specialists, food   quality and customer service,
       increasing their salaries.  service distributors and others. All   particularly in the catering and   How Do I Get A Copy?
         Secondly, the research has   of these have significant average   health & safety categories.  And   The 150+ page report is available
       found that the OP distributors   shares of end-user spend in these   while a rapid delivery service   now, and can be ordered via the
       are competing with a large   four product sectors.     is regarded by many in the   OPI web site (www.opi.net/mole)
       number of other channels in each   However, the research also   OP industry as a particular   for £2,000 for the UK report or
       of these categories: while the   shows that the OP channels   advantage over traditional   for a special discounted price of
       common perception may be that   – particularly the national OP   product-specific resellers, it is   £3,300 for both the UK and US
       it is the local janitorial resellers   suppliers – now have a good   also clear that for some of these   publications.
       who represent the greatest   foothold in these product   product categories a delivery
       competitor – and ‘lowest hanging   sectors, although this is more the   leadtime of 2-5 days is seen by   Martin Wilde is Managing Director
       fruit’ – for local OP dealers, these   case in some product categories   many FM supplies buyers as   of OP market research specialists
       have only a limited overall share   than in others. As Figure 2 shows,   being quite sufficient at present.  Martin Wilde Associates Ltd
       of end-users’ spend on cleaning   most (53%) UK respondents are   The report also looks at   (www.martinwildeassociates.com)

       16  BOSS TODAY | December 2013/January 2014


   FM article.indd   4                                                                                       02/12/2013   09:35
   11   12   13   14   15   16   17   18   19   20   21