Page 29 - BOSS Today Issue 25

“On the whole, it was worse. The 3. What were the three Exertis into the OP wholesale “There was a
dealer channel has been impacted most important single sector:
by supply problems that have now events that occurred more positive
been solved, but no one expected in the UK OP industry “Whilst their early success has atmosphere
them to go on for as long as they in 2014? Why do you been limited I believe they have
did and the impact of that is clear consider each of them an opportunity to become in the market
to see in the figures. There hasn’t to be important? a credible third option to
been much growth around and Unsurprisingly, given the above, independent dealers, provided place.”
managing to stand still has been five out of the seven ‘wise men’ that their offering is significantly
the result for many.” believed that the two mergers different and reflects the dealer Aidan Doyle
Chris Collinson between the OP wholesalers requirements of today.”
and contract stationers were Chris Collinson
2. How has the UK OP among the most important “The old ‘trade
market changed in the events of the year, albeit for a 4. Overall, who were
last 12 months? number of different reasons: the ‘winners’ in 2014? only’ rules were
Here, the respondents tended A variety of beneficiaries were no longer in
to focus on two key areas of “Vasanta and office2office identified overall, but two
change during 2014: firstly, the combining because, along with particular companies were play.”
continued structural decline in the Spicers and OfficeTeam each mentioned by three
demand for ‘traditional’ office merger, it significantly respondents: Chris Collinson
products, combined with a consolidates the office products
search among OP resellers for reselling market.” “Amazon again!”
new product areas: Philip Beer Philip Beer “There is a lot

“We are still seeing the structural “The Better Capital investment “Vasanta (due to the Spicers of duplication
decline in the core products. in OfficeTeam, because it was a situation).” in the market
However, the independent dealers statement of intent and told the Darryl Brunt
are selling more diverse products industry that the old ‘trade only’ and a distinct
and looking harder at vertical rules were no longer in play.” Outside of these, a number of
markets.” Chris Collinson winners were each cited by lack of
Aidan McDonough individual respondents: economies
Another four respondents
“Technology change continues to believed that the supply “Lyreco.” of scale.”
drive consumer behaviour away problems that Spicers had Darryl Brunt
from traditional office products.” encountered during the year had Chris Collinson
Darryl Brunt been a significant industry event: “Midsize dealers and the
customer.”
The second major change “Spicers’ difficult times both Simon Drakeford
identified was – inevitably – the have helped VOW and the
wave of consolidation: VOW dealers.” Indeed, one respondent
David Fielding reiterated that while the market
“We have started to see vertical conditions had been difficult
integration amongst distributers “Supply chain problems have in 2014, there had been some
and resellers: this is a major obviously posed significant opportunities for OP dealers to
change affecting a huge chunk problems for the independent exploit:
of the market. The full impact of channel; however, we are starting
the integration is yet to be felt, to see a positive performance.” “There is a lot of duplication in
but I believe that we are in for Aidan McDonough the market and a distinct lack of
interesting times.” economies of scale. The winners
Chris Collinson Other key events mentioned include those independents
included the continued that have recognised this and
“The big news is another inevitable growth of on-line trading, the consolidated their business,
round of consolidation ‘finally’ development of new product either through acquisition or
happening. At the same time, the categories, the reduction in the outsourcing the operational side
growth of online continues apace.” Office Depot sales force in the of their business.”
Philip Beer mid market, and the entry of Chris Collinson

December 2014/January 2015 | BOSS TODAY 29

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