Page 30 - BOSS Today Issue 25

Special Report - 2014 Review

5. And who were the – on balance – optimistic “Pure Darwinism and evolution. another expected a further
‘losers’ in 2014? about the future of the UK Some winners, more losers. The move towards online trading,
There was even less consensus OP market. However, all of long term decline will continue which the third expected would
in the answers given to these emphasised that this and some strong or nimble players have an effect on price and
this question. A couple of confidence was predicated will make hay. There are some marketing strategies:
respondents felt that the on a continued willingness to very leverage/loaded balance
contract stationers and Spicers change: sheets or lots of investment in loss “The impact of clear pricing
had had a particularly difficult leaders, so there will continue to be online compared to the inflated
year: “I am positive about 2015, as consolidation and merger plays, ‘retail less’ structure in many
the market forces will provide but they will become increasingly catalogues (or worse, ‘no priced’
“Spicers, Office Depot and the clarity around the market. It is more desperate. It’s difficult to see catalogues) makes it hard for
corporates generally.” up to the OP industry to re-align that many businesses that are marketers to clearly communicate
David Fielding to customer demands and investable, but there are some.” positioning… leading to trading
requirements.” Simon Drakeford down in categories.”
“The contract stationers appear Aidan Doyle Philip Beer
to be having a few challenges at 7. What will be the
this time.” “I’m optimistic and confident greatest change for the 8. What initiatives
Aidan McDonough that the independent dealers are UK OP industry in 2015? would you like to see the
embracing change, delivering For most of the respondents, industry pursue in 2015?
However, outside of this, the more diverse products and services 2015 was expected to witness In the light of these forecast
respondents tended to focus to their existing accounts and further consolidation, driven by changes, how did these
less on identifying individual have gone through a period the need for disintermediation respondents expect the UK OP
businesses and more on ensuring their operating costs are and greater cost savings: industry to respond? Again,
companies exhibiting certain managed and controlled.” a wide variety of suggestions
behavioural traits: Aidan McDonough “We will continue to see M&A in were made: for one dealer
every single part of the sector, group it was a question of
“Losers are those with their head in However, three others were driven by the necessity to enhance optimising the potential of
the sand.” more equivocal about the next profitability and develop long term online trading:
Chris Collinson 12 months, being concerned sustainable organisations.”
whether changes that they Aidan McDonough “I’d like to see the industry get to
“All those who joined businesses believed were necessary would grips with the challenges faced
that put too much focus into in fact be successfully made: For one respondent, the recent by e-commerce data and the
business that is not close enough merger activity undertaken by introduction of some new exciting,
to their core strengths.” “Both optimistic and concerned in the two major OP wholesalers cost-effective e-commerce
Philip Beer equal measure. Optimistic in the was merely a prelude to further solutions. I’d also like to see the
hope that there will be significant consolidation: dealer groups merging to enhance
Nevertheless, two respondents cost removed from the reseller the services they offer.”
were concerned about what side of the industry, along with “We’re going to see a whole new Aidan McDonough
may have happened to the OP reduced capacity, enabling those generation demand a whole
dealer community: businesses to potentially walk new way of doing things, and For another it was a question
away from some low margin that’s an exciting change. We of OP dealers both reducing
“Office products dealers, due to the business if they plan to live within will see wholesalers continue costs and widening revenue
supply issues and the consequences a smaller capacity footprint to rationalise and re-generate opportunities:
of the two mergers.” collectively. If this happens, then the way they go to market
Darryl Brunt there is potential (accompanied and continue to push down “We’ve got to address the issue
by a more positive economic the channel in order to remain of economies of scale where
“Small or weak dealers backdrop in the UK) to see some profitable. The continuation of dealers are concerned; there is
and new entrants.” inflation at consumer level… vertical integration and dealer an alarming amount of cost
Simon Drakeford something the industry needs! But consolidation and co-operation.” that is associated with such a
I am pessimistic that while some Chris Collinson fragmented channel, so managed
6. How confident are of the larger industry resellers services like Cadabra is the future
you about the prospects reorganise they will struggle to Each of the remaining for the winners of tomorrow. Also,
for the UK OP industry in engage in enough detail to look respondents focused on the industry has to grasp the idea
2015? Why? after category values, and the mix different issues: one expected that files and folders alone aren’t
Looking ahead to 2015, four of sales will suffer.” a widening of the influence of going to put bread on the table
of the respondents were Philip Beer the pan-European market, while in the future and that there is a

30 BOSS TODAY | December 2014/January 2015

2014 Review.indd 4 09/12/2014 11:34