Page 26 - BOSS Today Issue 20

2013 Review

potentially less focus them and turn to the see stocking a core still less than 10% of
on the category details internet for the ‘real’ range, but operating my business: it needs
as resellers over-focus price.” a more virtual model to be 20%!”
on new categories and Philip Beer whereby they will be Robert Baldrey
continue to lose margin facilitating consolidation
(as well as volume) in “There will be continued through strategic For one of the manufacturers,
traditional categories.” pressure on resellers, alliances with IT, EOS, FM the challenge ahead was less
Philip Beer due in part to greater and other specialists.” to do with product range and
margin transparency David Langdown more to do with supporting
What will be the greatest caused by the Internet. price and brand value:
7change for the UK OP They will start to What initiatives would you
industry in 2014? question the established 8like to see the industry “Price is such a mess that
Four respondents expected model and look for new pursue in 2014? promotions are critical:
there to be further consolidation ways of doing things.” Respondents gave a wide variety the industry does not
throughout the industry: Robert Baldrey of answers to this question. respect the value
Two respondents were keen to that promotions bring
“There will be a lot more For some, these ‘new ways stress the importance of getting in terms of building
rationalisation in the of doing things’ meant data and systems right: loyalty with consumers.
supply chain: costs are collaboration within and outside So if it’s one thing, it’s
too high so we need to the industry in order to offer a “I’d love to see some passing on vendor and
find new methods of wider product range at minimal conformity and reseller-backed price
adding value. There will cost: standardisation in IT promotions in full to
be more co-operation systems and data.” consumers to keep
and collaboration “Dealers should partner Bob Geens brands out there. If they
across the supply chain with other organisations don’t survive - and all
by all parties.” to service their Other respondents stressed that the industry is left with
Michael Gardner customers: partnerships the industry needed to continue is own label, house
where we don’t actually to widen the range offered, brands and white box -
“There will be serious touch the product. largely in order to keep pace then get ready to enjoy
consolidation at the What dealers have is with Amazon: commodity categories
top: there are too many a customer base: what forever!!!”
contract stationers. our partners would offer “Wider range supply: Philip Beer
There will also be is a product or service moving into new
consolidation in the we can supply to these product areas has For Spicers’ Alan Ball, there was
wholesaler and dealer customers.” got to be quicker and a need for dealers to re-focus on
channels. There is too Bob Geens easier. It’s a problem for local markets:
much supply capacity manufacturers that the
for the demand. It’s “Every traditional wholesalers carry such “Dealers need to step
natural in a recession range - including paper a limited range: Amazon away from wanting to
for businesses to fail and ink - is in decline. can take much more!” supply the whole of the
in order to phoenix Therefore in order to Sean Starkey UK and instead focus on
stronger businesses.” survive, let alone thrive, their locality.”
Alan Ball the channel needs to “We all need to - quite Alan Ball
offer new products, new literally - wake up and
Secondly, three respondents felt services and more value. smell the coffee! Focus Finally, two respondents were
that distributor margins would This will happen at an on stuff that we should keen to emphasise the need for
be further pressured, not least unprecedented rate be selling to make up for initiatives that developed the
by the greater transparency during 2014 and dealers the traditional products whole industry:
of pricing caused by on-line will need to decide how we have been selling.
purchasing: they go to market – as We need to see the “We need to continue to
a one-stop-shop or as industry take Facilities develop younger people
“Vastly exaggerated a specialist in specific Supplies more seriously. - we need their new
RRPs are likely to be niches. I think the UK will We are up 20% on these ideas and energy.”
less used as consumers follow suit, led by Spicers year on year, but it’s Michael Gardner
increasingly disregard and VOW, whom I would

26 BOSS TODAY | December 2013/January 2014

Review.indd 6 02/12/2013 11:41