Category Update

The past 12 months have left the stamping sector reeling, but inherent resilience within the industry, coupled with some nimble footwork, sees the category expecting brighter days ahead – by David Holes

The stamping manufacturers OPI spoke to for this feature all had one thing in common: they were badly hit by the COVID-19 pandemic, suffering declines in sales that could have been existential in normal times. However, the global nature of the crisis meant everyone found themselves in the same boat. In many instances, government interventions have softened the persistent blows and kept businesses afloat.

SALES HIT

As Franz Ratzenberger, Head of International Sales & Marketing at Austria-based COLOP, freely admits: “The pandemic had a big impact on our business. When it first hit, our order intake for traditional products decreased by 40% within days and remained at a low level for several months. We operate in more than 130 countries across the world, and in the worst-hit areas, sales dropped to practically zero. The priority was to survive.

“We had to curtail production capacities accordingly, but thanks to swift help from the Austrian and Czech governments – where we have manufacturing facilities – we were able to offer our employees reduced working hours.”

It was a similar story at fellow Austrian manufacturer Trodat. “COVID-19 hit the industry hard and put a stop to our long-standing success story, with lengthy lockdowns in many countries leading to a dramatic decline in stamp purchases,” says Global Marketing Director Stefan Cancik. “Thankfully, our international reach meant we were able to compensate for losses in some countries with successes in others. Also, disciplined crisis management has given us confidence that we will make it through these difficult times.”

German metal stamp vendor Reiner had a slightly different experience, according to Director of Sales & Marketing Gerolf Heldmaier. “It has not been a good time for anyone in the industry, with delayed and reduced demand affecting our large export share,” he reflects.

“It was crucial we remained flexible and showed understanding with loyal, long-term partners. Fortunately, our core business of marking devices remained largely unaffected because food and industrial production continued in most markets.”

Now that the pandemic is receding somewhat, both Reiner and COLOP are reporting knock-on effects on raw material costs and prices. “There’s currently an incredible price rally in commodities,” says Ratzenberger. “Some important materials are very scarce, plus transport and packaging costs have risen massively. Consequently, we’ve had to raise prices like many other companies in the office products sector, though hopefully, these bottlenecks will improve over the coming months.”

Keith Betti, General Manager at US distributor Consolidated Marking, adds that the current global shipping backlog is creating the biggest challenge to its supply chain. Consequently, the company had to adjust its inventory so it’s better positioned to insulate its distribution partners from the disruptions.

SHIFTING PATTERNS

As in many product categories, the shift to homeworking is also affecting this specific sector, with the sourcing process for business supplies – to meet the needs of non-office based employees – undergoing a fundamental change. “The big winners will be companies that best address these new requirements,” remarks Ratzenberger.

“Those showing a strong online presence have already benefitted from a huge boost. By offering

items specifically aimed at home workers, we will successfully deal with these changes.”

Cancik sees this trend as a big issue for the stamping category: “The transition towards work-from-home doesn’t look like changing any time soon, so we must concentrate on these new target customers and develop appropriate applications for them.”

That said, there’s a certain nostalgia for the pre-pandemic ways of doing business and not everyone regards the current remote nature of relationships as a positive development. “If online meetings, with hundreds of webinars, are how we permanently choose to operate in the future, a huge amount has changed,” reflects Heldmaier. “We will certainly miss the direct marketing activities and on-site project discussions we used to have with customers.”

RAFT OF OPPORTUNITIES

Still, the ill-wind that is COVID has certainly blown in some potential opportunities too. COLOP was able to increase sales and launch new products in some growth areas, including its arts and crafts range, with special items such as the Protect Kids Stamp which is aimed at helping children follow hygiene advice. An imprint on the palm using dermatologically certified ink is designed to remind children to wash their hands regularly. The ‘virus monster’ imprint should no longer be visible in the evening, because it disappears after about five washes.

In addition, the company continues to see strong and increasing demand for sustainable and ecological products, with its Green Line becoming a bestseller in many countries. Items with special hygienic properties have also experienced a renewed upswing as a result of the pandemic. Microban stamps offering antibacterial protection, for instance, have recorded a considerable surge in popularity.

The focus on maintaining a healthy, COVID-secure environment has generated particular interest in Reiner’s new generation of jetStamp 1025 handheld printers. Known as the ‘Sense’, they incorporate the ability to measure various physical aspects, including body temperature, indoor air quality and humidity.

The measured value can then be printed on documents such as a health passport or even directly onto objects themselves, making results tangible, visible and permanently traceable at all times. Following enquiries from interested customers, the company is now looking at incorporating a weight-measurement sensor into the device as well.

“The pandemic has exposed different needs,” says Heldmaier. “For example, manufacturers of disinfectants or masks have shown strong interest in our jetStamp Sense products, with potential applications in vaccination centres, too.”

A BETTER FUTURE

Despite the trials and tribulations of the past 18 months, it’s clear that the dominant stamp manufacturers are weathering the storm and are positive about the period ahead.

“We are very satisfied with our current development,” says Ratzenberger. “Our key metrics are already slightly higher than in 2019, despite there being important regions of the world, like South America and India, where business bounce-back after COVID-19 has been very slow.”

Cancik agrees: “The pandemic has posed an enormous challenge for all of us, but Trodat remains a solid, healthy, global company that continues to be a reliable supplier of outstanding products. Some countries are still massively affected, but in markets such as Germany and China, good sales development can be seen.”

Betti adds that while sales remain lower than pre-COVID levels, Consolidated Marking is now on a steady rebound: “There may still be disruption from future virus surges. However, we expect modest growth in this category from now on.”

On a cautious note, Reiner believes it may not be able to assess the full impact of the pandemic on the vendor until 2022. For now though, it is also pleased with the level of enquiries from potential new sales partners which are coming from various overseas markets. “The world is big and offers many opportunities,” concludes Heldmaier. “Let’s keep our fingers crossed that international business will soon be possible again without all the restrictions.”

The pandemic has posed an enormous challenge for all of us [...] but good sales development can be seen