OPI APP January/February 2021 B

BIG INTERVIEW

Greg Liénard, Lyreco January/February 2021

INSIDE THIS ISSUE l Staples/Office Depot: third time lucky? l ACCO Brands makes strategic shift l EOPA shortlist revealed l 2021 industry trends l OT Group in focus l

Brexit relief l Education frustration l Hybrid working – the future l OPI European Forum: A virtual success

CONTENTS 16 Big Interview Lyreco’s transformation path – and some of the potholes along the way 24 Hot Topic What’s to come in 2021 as coronavirus continues its rampage across the world?

OPI finds out...

28 Opinion Brexit is finally done. Mark Wilkinson takes a look at some of the early takeaways 30 Interview A new dawn at OT Group – OPI speaks to Sean Shine and Steve Horne 34 Category Update Disrupted on an unprecedented scale – the education sector 2020

Big Interview: Greg Liénard, Lyreco

Greg Liénard is a man who knows Lyreco inside out – he’s spent his entire professional life at the business supplies reseller. In the top – and hot – seat since July 2019, he’s been following the transformation path first set out by his predecessor Hervé Milcent.

At the same time, Liénard has been shaping the company’s new strategic direction and, of course, dealing with a global pandemic and all this means for its customer base. Agility and flexibility, he says, are vital in these demanding times, but these attributes don’t necessarily come easily to a company with the size and reach of Lyreco.

HOT TOPIC: KEEP THE PEDAL TO THE METAL

42 Advertorial Pilot Corporation steps up its fight against plastic pollution with the new B2P Ecoball 44 Spotlight JGBM: an expert partner in the office machines sector 46 Research From ‛nice to have’ to ‛no choice’, remote working has scaled new heights 50 Review: European Forum Online OPI’s first-ever digital conference turned out to be a resounding success

REGULARS 5 Comment 6 News 52 5 minutes with...

Michael Müller 54 Final Word Phil Jones

January/February 2021

Industry consolidation is as prolific now as it has been for the past few years, likely more so. As this issue of OPI went to press, the news had just broken that Staples Inc was once again hoping to acquire ODP Corporation (see Analysis, page 6). There have been many such deals, large and small, across all channels in the past year.

Mark Leazer, Executive Director of US national accounts organisation AOPD, certainly believes the pandemic is fostering “an environment for more independent dealers to sell”. [...]

There will also be many businesses that do not survive the current crisis.

38 Category Update Despite the turmoil of last year, the writing instruments sector has been grasping the opportunities

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COMMENT The OPI team EDITORIAL Editor Heike Dieckmann +44 (0)1462 422 143 heike.dieckmann@opi.net Deputy Editor Michelle Sturman michelle.sturman@opi.net News Editor Andy Braithwaite +33 4 32 62 71 07 andy.braithwaite@opi.net Freelance Contributor David Holes david.holes@opi.net

SALES & MARKETING Chief Commercial Officer Chris Exner +44 (0)7973 186801 chris.exner@opi.net Head of Media Sales Chris Turness +44 (0)7872 684746 chris.turness@opi.net Digital Marketing Manager Aurora Enghis aurora.enghis@opi.net

EVENTS Events Manager Lisa Haywood events@opi.net Event Programmer Sophie Carus sophie.carus@opi.net

PRODUCTION & FINANCE Studio Joel Mitchell joel.mitchell@opi.net Finance & Operations Kelly Hilleard kelly.hilleard@opi.net

PUBLISHERS CEO Steve Hilleard +44 (0)7799 891000 steve.hilleard@opi.net Director Janet Bell +44 (0)7771 658130 janet.bell@opi.net Executive Assistant Debbie Garrand +44 (0)7718 660249 debbie.garrand@opi.net

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Fortune favours the bold – here’s hoping

his time last year, I started this comment all cheerful and buoyant. A new decade, hurray – what will it bring? When, in January 2020, I talked about the challenges for our industry, little did I know what lay ahead: coronavirus carnage.

And what about the saying I had ‘stolen’ for this column from soft-carrier’s Peter Damman: “Be niche, be big or be gone.” Nobody could have remotely anticipated the absolute truth of that statement, especially the ‘niche’ part.

For instance, who would have thought that PPE – a niche category in the past – would become a lifesaver for so many operators? The education vertical is a good example of a sector in deep distress. It’s fair to say that the resellers serving this market would be suffering even more if it wasn’t for said PPE (page 34).

When, in January 2020, I talked about the challenges for our industry, little did I know what lay ahead: coronavirus carnage Webcams, headsets, home printers or shredders anyone? These were niche items in the office machines segment which have meant a relatively small UK distributor had an outstanding 2020 (page 44).

But it’s about far more than a stroke of luck in adverse circumstances that’s behind some of the successes we’ve seen. More likely, it’s years of vision, preparation and perseverance and of quickly pivoting – that word again – when needed. Resilience too.

Global reseller Lyreco – its leader Greg Liénard is featured in our Big Interview in this issue – has been selling PPE in some capacity for over ten years. Now it’s reaping the benefits (page 16).

On the subject of perseverance also, the biggest story of 2021 so far has undoubtedly been the renewed attempt by Staples in the US to merge with its rival ODP Corporation, at least as regards both companies’ retail operations (see page 6). Will the stars – not to mention Depot’s leadership, shareholders and the competition authorities – align this time and will it be third time lucky?

As Soennecken’s Dr Benedikt Erdmann concludes in Michelle Sturman’s Hot Topic on what’s to come this year (page 24): “The future of many companies and our sector as a whole will depend on whether we have the strength and the courage to take far-reaching, brave measures.”

Here’s hoping for a much better – and healthier – 2021 and that fortune really does HEIKE DIECKMANN, EDITOR favour the bold.

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Office Products International Ltd (OPI) Focus7 House, Fairclough Hall, Halls Green, Weston, Hertfordshire SG4 7DP Tel: +44 (0)20 7841 2950

No part of this magazine may be reproduced, copied, stored in an electronic retrieval system or transmitted save with written permission or in accordance with provision of the copyright designs and patents act of 1988. Stringent efforts have been made by Office Products International to ensure accuracy. However, due principally to the fact that data cannot always be verified, it is possible that some errors or omissions may occur. Office Products International cannot accept responsibility for such errors or omissions. Office Products International accepts no responsibility for comments made by contributing authors or interviewees that may offend.

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January/February 2021

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NEWS

Analysis: Third time lucky for Staples?

The latest Staples/Office Depot ‘merger’ scenario differs from previous attempts

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On 11 January, Staples US Retail (USR), via a Sycamore Partners-owned entity called USR Parent Inc, made an offer to acquire The ODP Corporation (ODP) – the parent company of the North American operations of Office Depot. It proposed to acquire 100% of ODP’s common shares at $40 each, valuing the deal at around $2.1 billion.

It marked the third time that Staples has tried to acquire Office Depot. On the previous two occasions – in 1997 and 2016 – the transaction was blocked by antitrust authorities, and the companies scrapped their merger efforts.

The 2016 court ruling is still relatively fresh in the memory. In allowing the US Federal Trade Commission (FTC) to issue a preliminary injunction against the acquisition, Judge Emmet Sullivan said the FTC had shown there was “a reasonable probability that the proposed merger will substantially impair competition in the sale and distribution of consumable office supplies to large business-to-business customers”.

Despite the continued rise of e-commerce and the growing presence of Amazon Business, that narrow view of how traditional office supplies are sold on a contractual basis to large corporate and public sector accounts is unlikely to be much different today.

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RETAIL FOCUS An analyst OPI spoke to shortly after USR’s initial letter believes regulators would again block the deal if Staples tried to buy ODP’s B2B arm, the Business Solutions Division (BSD).

However, he also buys into the argument that the transaction would get FTC approval if BSD was not included. And this is essentially what Staples proposed on 11 January: while

the offer was for the whole of ODP – comprising North American Retail, BSD and IT services division CompuCom – the move was clearly aimed at combining Staples and Office Depot’s retail footprint in the US. Indeed, anticipating the antitrust hurdles which scuppered the previous acquisition attempt, Staples stated: “[We are] prepared to take all necessary measures to divest ODP’s B2B business to an FTC-approved and qualified buyer concurrently with the closing of the overall transaction, thereby satisfying any reasonably anticipated regulatory objections.”

Staples also alluded to Office Depot selling off CompuCom, calling this a “logical strategic divestiture”. But if it is only interested in ODP’s retail operations, why didn’t it just make an offer for this part of the business?

“Good question,” said Eamon Kelly, Senior Analyst and Partner at Edgewater Research, who provided some thoughts on the Staples proposal.

“There has been chatter since the prior attempt about splitting the two businesses apart and trying to merge the two retail sides,” he told OPI. “I am not really sure what the value is on the retail side, except that it would allow them to pick the best stores and perhaps leverage some costs.

I think ODP has clearly been trying to focus on its B2B segment and wants to be valued as a B2B company, so finding a suitor for the retail segment might help speed up that process.”

There has been chatter since the prior attempt about splitting the two businesses apart and trying to merge the two retail sides It appears this ties in with Office Depot’s thinking. Shortly before this issue of OPI went to press, ODP responded to the Staples proposal.

It put forward its own “more compelling” course of action that favoured a merger of the two companies’ retail footprints plus their respective consumer-facing websites.

This would then leave ODP free to chart its own course under its ‘Maximize B2B’ strategy.

The reseller also confirmed it was exploring the possible sale of CompuCom, which obviously hasn’t lived up to expectations since it was acquired for $1 billion in 2017.

While it is still too early to say for sure how things will pan out, initial signs are pointing to a combination of Staples and Office Depot’s retail networks in the US, approximately 2,200 stores. Sycamore’s background is in acquiring distressed retailers, so this type of project fits in with its main area of speciality.

After pocketing more than $2 billion from such a transaction, what would then be ODP’s play on the B2B side? This could throw up some interesting possibilities of business combinations, marketplaces and category diversification.

Make sure you follow developments on opi.net as this story unfolds over the next few months.

NEWS

Analysis: ACCO’s got the power ACCO Brands makes a strategic move into the gaming category

ACCO Brands last December completed its acquisition of video gaming accessories supplier PowerA in a deal that could be worth almost $400 million. The transaction marked another step in the strategic shift away from its dependency on its core North American office supplies channel that ACCO has been implementing over the past few years.

Based in the US state of Washington, PowerA is one of the top names in the third-party gaming controller category; it also markets other items such as headsets and power charging solutions. Founded in 1984, it has annual sales of around $200 million and adjusted EBITDA of approximately $50 million.

Gaming was a segment which benefitted from COVID-related lockdowns, and PowerA was able to grow its top line by 20% in 2020.

The end of the year also saw major products launches by Microsoft and Sony that will give it further momentum going into 2021.

Not that ACCO has any intention of turning its back on the OP channel. “It will continue to be a big part of our business,” Elisman confirmed on an analyst conference call just after the PowerA acquisition was announced.

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[The OP channel] will continue to be a big part of our business

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About 18 months ago, ACCO was mentioned in the financial press with a possible interest in acquiring mobile phone accessories supplier Zagg (which was recently bought by an investment group).

Indeed, ACCO Brands CEO Boris Elisman revealed that it had been looking at adjacencies in the technology space for the past three years or so. He said his team had cast “a fairly broad net”, but that nothing suitable came up which met both its strategic and financial criteria.

That is until PowerA and its advisors approached ACCO in early 2020, starting the process which led to December’s deal.

“The acquisition of PowerA further accelerates our transformation into a consumer products company,” noted Elisman. “After the acquisition, more than 50% of our sales will come from consumer, school and technology items, which will offer faster-growing market demand over the next several years.”

In what was clearly a nod in the direction of the traditional office products sector, he added: “Our channels will become more consumer and online-centric, and we will be less dependent on growth-challenged customers and categories.”

FINANCIAL LIMITATIONS One consequence of that deal is that ACCO has taken on more debt as it is partly financing the transaction from borrowings on its $600 million revolving credit facility. In the short term, this means the company’s leverage ratio requires it to seek bank consent before it can engage in any further inorganic growth activity.

According to CFO Neal Fenwick, for “the foreseeable future”, this will limit the firm to “small or no acquisitions” as cash is used to fund its dividend and pay down debt.

Having said that, he added that ACCO will continue “to view opportunities as they arise”. With companies still facing COVID-related pressures, tuck-in deals in the core OP space may not be totally out of the question.

RECENT ACCO BRANDS ACQUISITIONS

ACCO Brands’ CEO Boris Elisman discussed the PowerA acquisition and the core office products channel during a recent OPI Talk podcast.

To listen to this interview, visit opi.net/podcast

2016: Pelikan Artline, $104 million Leading distributor of academic, consumer and business products in Australia and New Zealand 2017: Esselte, $327 million Market-leading European manufacturer and supplier of office and consumer products 2018: Goba Internacional, $38 million Premier marketer and seller of school and craft products in Mexico via its key brand Barrilito 2019: Foroni, $57 million Top manufacturer, marketer and seller of consumer and school products in Brazil 2020: PowerA, up to $395 million Leading third-party gaming controller, with 75% of sales in North America

NEWS

EOPA 2021 shortlist revealed In mid-January, a group of senior executives from all channels in the business supplies industry came together – virtually for the first time ever – for this year’s European Office Products Awards (EOPA) judges meeting.

Now in their 20th year, the EOPA are firmly established as the ultimate accolade for business products companies operating in Europe. Sadly, in this milestone year, the judges couldn’t physically meet in a European location somewhere.

Regrettably also, due to the ongoing coronavirus pandemic, the decision was taken to curtail the number of categories to a considerably smaller number in an effort to highlight the products, companies and individuals that have excelled over the past, difficult year.

Those points aside, the discussions among the judges were as lively as ever, with categories, nominations and entries fiercely debated and passionately judged.

EOPA shortlist:

Product of the Year • 3M – Scotch Flex & Seal Shipping Roll • ACCO Brands – Leitz TruSens Z-3000 • Avery – Avery Protect Antimicrobial Film Labels • Exacompta Clairefontaine – Clean’Safe Range • Renz – AIR2COLOR

Reseller of the Year • Amazon • Böttcher • Bureau Vallée • Printus/OTTO Office

Vendor of the Year • ACCO Brands EMEA • Durable • Essity • Fellowes Brands

Wholesaler of the Year • ADVEO • JGBM • PBS Holding • Quantore

Professional of the Year & Industry Achievement No shortlist – winners to be announced

For more on the shortlisted products and companies, look out for information on opi.net where the winners will also be announced before the end of March.

And don’t miss a full review of the EOPA and all the winners in the March/ April issue of OPI.

Paper makers announce strategic moves of the shares of SpinCo at the time of the separation, with the intent to monetise these within 12-months.

SpinCo will also raise debt to pay a “significant” dividend to IP. Having said that, IP says SpinCo’s capital structure will still provide it with “operating and strategic flexibility”.

Explaining the rationale for the spin-off during an investor conference call in December, IP CEO Mark Sutton said it would give each company focus and SpinCo would then be able to chart its own course.

Despite secular declines, he said uncoated freesheet paper was still a “huge market” and that SpinCo would benefit from its “very competitive” assets and high-quality production.

North American competitor Domtar, meanwhile, has also made a strategic decision. It will sell its personal care business in a deal worth about $920 million to focus on its paper and packaging operations.

Like IP, Domtar had positive things to say about the paper industry despite significantly reducing its capacity over the past few years. “In paper, Domtar has a leading market position in North

America with well-invested, low-cost paper mills,” the company stated. “Paper has generated attractive returns even in the most challenging environments, and Domtar expects it will remain a reliable and highly cash-generative business in the coming years.”

January/February 2021

International Paper (IP) has said it will spin off its Printing Papers division to focus on its packaging solutions operations. The new business, currently known as SpinCo, includes IP’s office papers offering.

It will have annual sales of $4 billion (based on 2020 estimates) and comprise eight mills in the Americas and Europe, with a production capacity of 2.9 million tonnes. A corporate name will be chosen at a later date, as will the new company’s headquarters location, although it is likely to be domiciled in the US. Two IP veterans have been named to lead SpinCo. Jean-Michel Ribiéras, SVP of Industrial Packaging who has been with the company for 27 years, will become CEO. John Sims, currently SVP of Corporate Development and with IP for the past 26 years, will serve as SpinCo’s CFO. The remainder of the leadership team and board of directors will be announced over the next several months.

The transaction – which is expected to be completed between July-September 2021 – will be implemented through the distribution of SpinCo shares to IP shareholders. IP will retain up to 19.99%

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HEALTHY AIR. HEALTHY SPACES. FELLOWES AIR PURIFIERS IN DEMAND

PEOPLE CARE ABOUT THE AIR The recent pandemic has cast new and unforgiving light on airborne transmission of contaminants like viruses, flu and allergens. No longer is air hygiene a seasonal consideration, as 239 scientists from 32 countries penned to the global health community. They stated it is undeniable that viruses are transmitted through the air and are focusing more attention on the need to improve ventilation, air circulation and overall indoor air quality.

AeraMax Professional AM3

LEADING THE WAY In 2014, Fellowes added air purification to its product categories to continue its mission of creating healthier workspaces for the professional end user. The introduction of the category for Fellowes included innovative solutions built from the ground up by their integrated new product development team. With protecting shared air in indoor spaces at the center of their strategy, the Fellowes AeraMax Pro line-up created a smart, effective, integrated and reliable solution that answered a key challenge of facility and business managers across several vertical markets. When the global pandemic hit, Fellowes was ready to answer the

call with increased production, inventory, marketing, as well as international sales support to help our resellers take advantage of the market opportunity and to help stop the spread of viruses and pollutants.

CREATING HEALTHIER ENVIRONMENTS In order to get back to business, in classrooms and other public environments, clean air should be a key component of enduser hygiene strategies.

The Centers for Disease Control and Prevention (CDC) have verified researchers’ claims that COVID-19 lingers airborne in enclosed spaces, therefore ensuring clean air is more critical than ever. Fellowes commercial air purifiers remove up to 99.97 percent of airborne contaminants using a unique, four-stage filtration system. Not only does the purification system capture viruses, it also reduces dust, VOCs (Volatile Organic Compounds), and odors. LifeSpire, an organization providing services for the intellectually disabled in New York, invested in 550 AeraMax Pro PureView units early in the pandemic, not only to mitigate COVID exposure but also to protect this high-risk population from a myriad of airborne pathogens and irritants.

SMART, EFFECTIVE, INTEGRATED AND RELIABLE Over the years, Fellowes has refined its line of air purifiers with the needs of different spaces and audiences in mind.

The patented EnviroSmart™ technology uses commercial grade sensors to measure motion, sound and odor, while the fan speed automatically adjusts based on room occupancy, making the most use of both energy

The effectiveness of Fellowes commercial air purifiers is focused on a four-stage proprietary filtration process including a pre-filter, carbon filter, True HEPA filter and finally a PlasmaTrue Bio-polar ionizer. True HEPA filters are treated with an anti-microbial treatment where bacteria are captured and cannot grow on the filter. The filtration process also removes dust, pollen, allergens and mold, proving one of the most effective solutions in the industry.

At the heart of the commercial lineup is reliability.

Ensuring an air purifier is fit for a commercial application is a critical factor in choosing the right machine for shared spaces. The Fellowes AeraMax Pro air purifiers have been built for 24-hours-a-day, 365-days-ayear operation including multi-year warranties and commercial materials used in their production.

ADVERTORIAL Fellowes

and filters. Units with PureView™ technology include laser sensors to measure ultrafine particles and communicate in real time air quality through a digital display screen, making the invisible visible.

The purifiers’ modern design easily compliments any room aesthetic, and the commercial units can be integrated into the environment by seamlessly mounting to the wall. The Spurs Sports & Entertainment organization, through environmental services reseller GermLogic, installed Fellowes AeraMax Pro PureView units in their locker rooms, lounges and luxury suites at the AT&T Center in San Antonio, Texas and in San Antonio Spurs’ practice facility. Brian DiCicco, CEO of GermLogic, explained, “The AT&T Center and San Antonio Spurs chose the AeraMax Professional products as they wanted a permanent wall-mounted solution with a visible representation of air quality, reassuring players and patrons they were in a clean air environment.”

AIR PURIFICATION IS HERE TO STAY There is no doubt consumers’ minds have been awakened to the need to clean their indoor air.

Air purification is now on the procurement list of large and small businesses alike, alongside hand sanitizers and surface cleaners. Fellowes stands ready with a full range of solutions for those decision makers and is prepared to guide, assist and train resellers to help them capitalize on opportunities and help clean the air we share! To learn more about Fellowes Air Purification visit aeramaxpro.com.

January/February 2021

NEWS

M&A NEWS EXERTIS EXPANDS IN THE US Exertis, the principal trading name of DCC Technology, has purchased JB&A, a San Rafael, California-based provider of broadcast, post-production and pro audiovisual (AV) technologies to system integrators and B2B resellers.

The acquisition continues Exertis’ strategy of buildling a diverse pro AV, pro audio and musical instrument value-added distribution business in North America.

CLARIDGE UNDER P/E OWNERSHIP US-based viscom manufacturer Claridge has been bought by Skylark Private Equity Partners. The deal marks the end of Claridge’s ownership by the Clavey family, who started the business in 1947.

Marcus McNew, Claridge’s Treasurer, will assume the role of President and will continue to lead daily operations in partnership with Skylark and the vendor’s senior leadership team of Gregg Steliga, Wade Fuller and Kurt James.

GBP DIRECT ACQUIRES US independent reseller GBP Direct has purchased fellow Louisiana dealer Ives Office Products and Printing. A familiar name in the New Orleans metro area, Ives was founded in 1959 and was led for many years by President Peter Dupuy.

DELTA PLUS GROWS IN NORTH AMERICA Global PPE vendor Delta Plus has acquired 100% of the shares of ERB Industries.

Founded in 1956, ERB is headquartered in Georgia, where it has two manufacturing units that specialise in head protection equipment and product customisation services. It has around 120 employees and is looking to achieve 2021 sales of $30 million.

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EAKES ADDS JAN/SAN EXPERTISE US independent dealer Eakes Office Solutions has bought Schwarz Paper Company. Schwarz has been in operation since 1899, serving the office, locker and janitorial supplies needs of businesses in Lincoln, Nebraska, and throughout the state.

Schwarz’s former President Knox Jones, along with Andy Riddle and Pat Jones, will be joining Eakes as janitorial specialists.

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FLINDERS CHANGES HANDS Netherlands-based furniture retailer Flinders has been acquired by privately managed group Nine United. Founder and CEO Geert-Jan Smits has left the business to set up a sustainability initiative in the furniture segment, with current COO Oscar Diele taking on the CEO role. Flinders will continue to operate as a local entity within the Nine United portfolio.

Paperworld 2021 cancelled

Trade fair organiser Messe Frankfurt has called off several in-person events, including April’s show that was housing Paperworld. The 2021 stationery and office supplies event had already been postponed from its traditional spot over the last weekend in January and had been slated to form part of the International Consumers Goods Show (ICGS) along with Ambiente and Christmasworld. This was due to take place in Frankfurt from 17-20 April.

However, as much of Europe – including Germany – has continued to impose tougher COVID-19 restrictions at the start of 2021, Messe Frankfurt has now confirmed that ICGS will not take place.

“There is currently no end to the pandemic in sight. Events are effectively banned in Germany, and ongoing international travel restrictions mean it is impossible to make any trade fair plans for April or May 2021,” the company stated.

With a date later in the year not making sense because of order timings, the next Paperworld will now be held – along with Creativeworld – from 29 January to 1 February 2022. A Consumer Goods Digital Day will still take place on 20 April 2021.

ES Tech Group buys US firm

ES Tech Group, provider of the EvolutionX B2B e-commerce platform, has announced a definitive merger agreement to combine its EvolutionX US division with Florida-based digital marketing agency Spinstak.

EvolutionX customers will have access to Spinstak’s services through its preferred marketing software provider, HubSpot, along with creative design services, and printed catalogue development. EvolutionX-specific service packages are being announced this quarter, along with pricing and details. Spinstak will utilise the EvolutionX e-commerce platform for new clients and begin the process of migrating existing e-commerce customers to the new platform.

For the newly merged entity, Dave Bent – President US Operations at ES Tech Group – has assumed the role of President, while Spinstak CEO Matt Johnson has been named VP of Business Development. Johnson will also be General Manager of Spinstak.

“The combined group uniquely brings together the world’s best e-commerce platform with the catalogue and digital marketing services that distributors and manufacturers need to create compelling customer experiences which will accelerate their growth,” said Bent.

“All too often, e-commerce initiatives focus solely on the technology aspects of launching a new website. Success requires a more holistic approach that includes organisational and process change.

“Spinstak offers e-commerce marketing strategies and services which complement a distributor’s existing sales capabilities to further accelerate customer engagement and online sales.”

Johnson added: “We’ve been actively searching for a better e-commerce solution for our customers and the industry at large.

Dave Bent With EvolutionX, we have found the best.”

US dealer organisation Independent Suppliers Group (ISG) has confirmed it is planning to hold Industry Week 2021 in early November.

The event was scheduled to take place in Las Vegas, Nevada, in March, but this will no longer be possible due to the current COVID-19 situation.

ISG CEO Mike Gentile told OPI the group is in the process of finalising plans to hold Industry Week 2021 in the first week of November. An announcement is also expected regarding the dates and location of the 2022 event. Look out for more information on opi.net.

Office Partners grows membership

US office products dealer group Office Partners added more than 20 new members in 2020 despite – or perhaps because of – the COVID-19 pandemic.

Speaking to OPI, Office Partners President Matthew Hebert confirmed the group now has around 125 dealers after adding over 20 new resellers last year and losing only two, both through retirements.

Office Partners has also been busy on the supplier front. It picked up approximately 25 new vendors in 2020 after proactively going after suppliers of furniture, jan/san, technology and PPE products. In addition, it has access to 200 direct vendors via its ongoing partnership with jan/san and foodservice buying group TUG. This time last year, Office Partners created a programme for larger dealers called OP Direct. Starting with one member – Hawaii-based HSC Office Products – the group has been adding three more dealers: School Tool Box in Illinois, Business Essentials in Texas, and Indoff in Missouri.

“It’s been a tough year for all of us, but everyone has been doing a good job filling in the gaps,” Hebert said.

Look out for our Big Interview with Matthew Hebert in the next issue of OPI.

ON THE MOVE SMITH WORKING WITH HIGHLANDS Well-known European OP executive Jonathan Smith has joined sales, marketing and e-commerce agency Highlands in a part-time business development role. The former VP of Sales for Avery Europe will create new opportunities for Highlands’ clients with key distribution partners across the continent.

NEWS

Industry Week moved

EUROPEAN APPOINTMENTS FOR ARMOR Two former Clover executives have joined European aftermarket supplier Armor Print Solutions. David Hamblen has been named as Sales Director for the UK, Ireland and Strategic Accounts in Northern Europe.

Meanwhile, Amaya Rogers has been appointed to the role of Sales Director for Southern Europe.

LEADERSHIP CHANGE AT LEGAMASTER Daniëlle Bazuin (pictured), Managing Director at edding’s Legamaster subsidiary for more than ten years, has taken on a new role within the parent group. As part of its 2025 strategy, edding will be reorganised along consumer-centric lines.

The new Legamaster business unit, called Collaboration@work, will be headed by Andreas Hase, a long-term edding executive who has been Managing Director of the Americas region for 18 years. He will run the commercial aspects of the business, while Bazuin’s tasks have been taken on by John Dick, previously Legamaster’s Director of Supply Chain and Services.

MD LEAVES LYRECO GERMANY Long-serving Lyreco Germany Managing Director Marc Gebauer (pictured) recently left the reseller. Until a permanent successor is appointed, the subsidiary will be run

by Christophe Chambre, Zone Managing Director at Lyreco Group.

DEFLECTO MAKES EUROPEAN APPOINTMENTS OP channel vendor Deflecto has appointed Kirsty Gray as Commercial Manager Europe. Gray has 20 years’ experience within the consumer products sector and will lead Deflecto’s European consumer products division.

Meanwhile, Sam Mason has been promoted to UK Sales Manager following five years as UK National Accounts Manager, while Neil Tadman has been named Business Operations Manager.

January/February 2021

MANAGEMENT CHANGES AT RAPESCO Stationery vendor Rapesco has promoted Alex Bonarius (pictured) to Head of its European Business. He will take on the key accounts in the UK for Rapesco and sister brand Tacwise, adding to his responsibilities in Europe and Australasia.

Meanwhile, Group Trading Director Ken Trenberth will leave the business in mid-March after almost 15 years “to pursue other interests”.

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NEWS

IN BRIEF

IKEA stops annual catalogue Retailer IKEA has said its 2021 printed catalogue will be the last. The furniture giant has been producing a catalogue for 70 years. In its peak year of 2016, 200 million copies were distributed in 69 different versions, 32 languages and to more than 50 markets. This year, around 40 million copies will be printed.

Calling it an “emotional but rational” decision, IKEA pointed to changing consumer behaviour and the need to further invest in digital innovation.

New name for top French dealer Effective 1 January, France’s largest independent dealer Lacoste Dactyl Buro Office changed its name to Lacoste Dactyl Bureau & Ecole [office and school]. The reason behind the change was a focus on its main areas of specialisation, now the integration of the Lacoste and Dactyl Buro teams has been completed following the merger of the two regional resellers at the end of 2018.

8 million Number of subscribers to HP Inc’s Instant Ink programme

$240 million Valuation of UK-based start-up online marketplace OnBuy

30% 70%

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opi.net poll

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Have recent vaccine developments made you more confident about your business prospects for 2021? n Yes n No

Many people who have been working in a dedicated home office for the past few months aren’t going to accept going back to a work environment where they can’t avoid interruptions and distractions. The office needs to step it up and provide better places to support focused work Jim Keane, CEO, Steelcase

PICTURE OF THE MONTH French office and school supplies retailer Bureau Vallée and its sponsors are enjoying good publicity during the 2020/2021 Vendée Globe non-stop, around-the-world solo yacht race.

As this issue of OPI went to press, Louis Burton, skipper of the Bureau Vallée 2 boat, was vying for the lead of the 40,000 km (22,000 mile) challenge.

In what is expected to be the closest finish in the event’s history, the leaders are due to arrive in the French port of Les Sables d’Olonne at the end of January, after almost three months at sea.

€500 million 2020 sales reported by German online reseller Böttcher

Leading US dealer rebrands Iowa-based independent business products reseller Storey Kenworthy has unveiled the results of a rebranding process two years in the making. The project included an updated website, branding and logo in a move which, the company said, mirrors the pioneering spirit of co-founder Arthur Kenworthy who started the dealership in 1936 as the US emerged from the Great Depression.

£18 million Annual product sale s of Initiative, the privat e label brand of UK dealer gr oup Integra (pre-COVID figure)

(Photo: Vincent Olivaud)

BIG INTERVIEW

On the RIGHT TRACK

As Lyreco’s transformation journey continues, there have been inevitable bumps on the track. But these bumps have also offered opportunities – sometimes unexpectedly so – as CEO Greg Liénard explains

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reg Liénard is a man who knows Lyreco inside out – he’s spent his entire professional life at the global business supplies reseller. Having graduated from France‘s Ensiame (Institute of Technology) with a degree in Business and Engineering in 1995, he began his diverse and international Lyreco career in Canada in 1996 where he was involved in the reseller’s SAP implementation.

Moving back to Lyreco’s headquarters in Marly in the north of France in 2000, he was put in charge of the company’s M&A activities. Back then, establishing a solid presence in Asia was high on the agenda and Liénard spent a lot of time in that part of the world, looking at different markets and evaluating the feasibility of expanding into new territories.

Three years on, in 2003, he took on a completely different role as Group HR Director, a new position that further cemented an increasingly important aspect of the company – its people. Talent acquisition, retention and development were key, with programmes like Lyreco For Education and Lyreco University still thriving today.

The next long chapter for Liénard began in 2010 when he relocated to Singapore where, for the following nine years, he oversaw the reseller’s Asian operations. Since 2016, he also wore the additional hat of Group Innovation Director. It meant that, on the one hand, he was tasked with sustaining and further developing Lyreco’s Asian interests while, on the other, he was looking at the broader picture of identifying where the industry was headed and making sure Lyreco was at the heart of any innovative trends that were happening.

All change again in mid-2019 when Liénard took on the CEO role after his predecessor Hervé Milcent left somewhat suddenly following four and a half years in charge. Having had his fingers in so many pies over

the years stood Liénard in good stead, never more so than only nine months into his tenure when COVID-19 struck with a force that the world is still reeling from today.

OPI’s Heike Dieckmann caught up with Liénard on the currently de rigueur Microsoft Teams for an update on all things Lyreco. The transformation path Milcent began during his tenure, the reseller’s new strategic direction and, of course, the plight and opportunity of coronavirus were all part of the conversation, as Liénard steers the big Lyreco ship towards a century in business.

OPI: I’ve just explained your longevity at Lyreco, so I’m guessing you were well versed in everything that was happening at Lyreco when you took the helm in July 2019. Can you shed some light on the lead-up to that date?

Greg Liénard: We had decided to take a close look at the company to see where it was at. The result was a plan called Dare 3.0. The goal was to make sure Lyreco was putting itself in a better position to address the opportunities that the digital world was offering us.

Lyreco is a people company – people selling products to other people. But while our staff are our most important asset and they will continue to be key to selling in the future, it’s a fact that

BIG INTERVIEW Greg Liénard

Lyreco is a people company – people selling products to other people.

[But...] customers increasingly want an online experience as well

OPI: So what was your first job in charge of the whole group?

GL: Initially, I observed and listened. I had spent nearly a whole decade in Asia and even though I was part of the Executive Committee and had been participating in the decisions that were taken, I was somewhat remote.

We were finalising the Dare 3.0 transformation project at the time, making sure everything was working and that we could make it available to other countries. I say it like this, because we had piloted it from a central perspective in two locations: Scandinavia and France. Now we had to roll it out to everywhere else.

Next, we needed to define the vision we wanted to have for the following five or ten years. Where do we want to be going? That new vision became ‘A Great Working Day. Delivered.’ Every word here is important. We don’t want to achieve a ‘good’ working day, it’s ‘great’ we aspire to. The reference to ‘working day’ is important too, because we are a B2B firm and don’t intend to go outside that scope – it’s workplaces we supply, nothing else.

January/February 2021

customers increasingly want an online experience as well – researching online, requesting information online and buying online.

As such, we needed to create a complete omnichannel experience, so that customers can come to us in any way they want – online, on the phone, via our sales reps or through chat solutions. All these channels need to be seamlessly interconnected.

To give you an example, we want to make sure that, say, if a customer is moving offices and goes online to start looking for a desk, Lyreco is capable of tracking this and to fully realise that here’s a service opportunity. The search will be a trigger which results in one of our staff calling this company, sending a sales person and to essentially help with the entire move.

We don’t want to be a pure digital player, but one that’s adding services to every shopping

experience. In order to achieve this, we had to reshape the way we were organised a bit, from an IT standpoint. Dare 3.0, which ran from 2016 to 2019, put in place the tools needed.

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Greg Liénard BIG INTERVIEW www.opi.net 18

OPI: So you had the vision and the logo.

What was next?

GL: How to achieve that vision. The plan was to begin a strategic review process last March, but a small event called COVID-19 happened, so it inevitably got postponed. We started talking to consultants in July and over the past few months have spent a lot of time on this. We’ve defined five strategic pillars which we’re now ready to release.

OPI: Can you elaborate on these pillars? Are they in line with the transformation path that Hervé had set out and the trends which he referred to?

GL: Some of them are. As I mentioned, we need to deliver an omnichannel experience to our customers, reinvent ourselves and do our marketing differently. We have to help our sales people be more efficient in a new way – the current pandemic has certainly exacerbated that need. This process has started, but it has to be accelerated.

Digital transformation is something every single company in the world is dealing with right now. That’s one of the trends we had started to address and where we were a little slow. Customers are expecting it and we are now delivering it.

Also in terms of trends – and it’s become so much more than a trend – homeworking is obviously

something else that COVID has accelerated massively. It affects the products we sell and the services we provide.

Again with the pandemic playing a big role, PPE is a huge topic for us. We are happy with what we’ve done, but that category is going to become even bigger for Lyreco.

Lastly, as you know, we put a lot of emphasis on a sustainable and circular economy. It’s been part of our DNA for many years and you’ll hear much more in this context from us in the future.

OPI: I was going to ask about some of Lyreco’s milestones in the past few years. On the topic of the PPE category which you’ve just referred to, the acquisition of Intersafe was one of them, I assume, and I’ll get to that a bit later. But I also wanted to cover a couple of ‘retreats’ – Lyreco leaving the Australian market in 2018, for example. Can you tell me a bit about that?

GL: Leaving Australia was heartbreaking for us.

Let me start by saying that we are investors and business people; we don’t enjoy having to divest operations. But what happened in Australia – and I was managing that operation then – forced us to look at the situation very carefully.

When Staples and Office Depot-owned OfficeMax came together as Winc, there

The scope for more share always remains, so we firmly believe that Lyreco is capable of growing still in every single market – in Europe and Asia options and it ended up with COS buying Lyreco’s operation down under. I think that was the best outcome for our people there, but also the market in Australia and, of course, for COS. OPI: You made another big divestment in Canada years earlier, in 2014, to Novexco.

Steve Law back then said that the sale was the result of a “strategic review”. With two continents out of the picture now in terms of a direct presence, what is Lyreco’s current global footprint?

GL: We are currently operating directly and 100% under the Lyreco name in 25 countries in Europe and Asia – an extensive coverage none of our competitors can remotely match. On top of that, we have a network of 17 partners in North, Central and South America, Europe and the Asia Pacific region. We are today a leading operator in Europe and are growing our leadership positions in Asia.

Asia has always been difficult because the markets there are very dynamic and extremely fragmented, so gaining market share and leverage takes a long time.

OPI: What are your combined sales – am I about right when I say €2 billion ($2.4 billion)?

GL: laughs. We’re a private company, so don’t communicate on numbers. It’s a Lyreco habit.

OPI: I had to ask! Let’s stick with Europe for a moment. Would it be correct to say France and the UK are your biggest markets in this part of the world?

GL: It would be fair to say that, yes.

OPI: Talking of the UK, with Staples now under the EVO Group of Companies’ umbrella with Banner, have you had to relinquish your market leadership there?

GL: Let’s just say we are two strong contenders.

OPI: Where are the biggest opportunities for Lyreco at the moment?

GL: Everywhere. Our market positions in the various countries differ. As I said, our objective is to be the leader in every single market and we haven’t achieved that yet.

But even where we are, the scope for more share always remains, so we firmly believe Lyreco is capable of growing still in every single market – in Europe and Asia.

OPI: What are or have been the hardest markets to crack for you in Europe?

GL: I think if you were to talk to every single player in the industry, they would tell you there are a few markets that are more difficult than others.

Germany remains very challenging. We believe we are underrepresented there and have an ambition to grow faster in the country in the future than we have done in the past.

OPI: I’m sure your peers would agree with that assessment. Your big European rivals – Staples Solutions and Office Depot Europe – have had their own challenges, of course, with their owners being active in terms of divestments.

Has that disruption benefitted you?

GL: We love working in an environment where we are being challenged. Have we benefitted from their long-term vision? Let’s say we have customers that have switched to us or other players.

But these operators remain strong. They are present in tenders, they still steal customers from us and it’s all healthy competition. And they are not the only ones either – we operate in an industry with many good players.

OPI: And as a result of Depot divesting its Central European business, you now have a bigger competitor in PBS Holding I guess?

January/February 2021

OPI: Yes, we discussed the challenges of the region in several previous interviews – with you, your predecessors and your competition.

Lyreco is actually the only global business supplies reseller which has managed to stay the distance in Asia. And you bought DeskRight in Singapore in mid-2019, just before you took on your new CEO role, I believe.

GL: That’s correct. And this acquisition is allowing us to do two things: the first is to generate more volume – and volume is always good in our industry. The second is giving us logistics capabilities we didn’t have previously. These capabilities are enabling us to enlarge our offering with some products that are typical for the Singapore market and which we didn’t stock.

Last, but by no means least, we welcomed Andy Koh – founder and Managing Director of DeskRight – to our team. He was essential in accelerating our understanding of this market.

It’s been a good move for us, but the vast majority of our business still comes from Europe.

OPI: How much of it?

GL: Over 90%. Asia is huge and we are not covering markets like China, India, the Philippines, Vietnam or Indonesia, where the population is very high. We’re in Hong Kong, Thailand, South Korea, Malaysia and Singapore. We aspire to be leaders in the markets we’re in. In Asia specifically, that is a very complex and difficult undertaking.

BIG INTERVIEW Greg Liénard

were three big B2B players in the market.

Winc – suddenly a huge operator, comparatively – Complete Office Supplies (COS) under the leadership of Dominique Lyone and Lyreco. It made no sense.

I’ve known Dominique for a long time and we’ve often chatted about what we could do together one day. Our two companies share the same values and at the time of the Winc merger, Dominique and I started to talk again. We looked at different

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Greg Liénard BIG INTERVIEW

GL: Absolutely. And PBS is a solid and highly respected company. Getting that business from Depot was very good for this player, for sure.

OPI: What about Amazon, is that company causing you sleepless nights?

GL: Historically, when customers that were buying from firms like Lyreco could not find the product they wanted – because we typically ‘only’ carry about 10,000-15,000 SKUs – they would go to the superstores. Now they go to Amazon.

Does it have an impact on our sales? Yes, a bit.

But it has also forced us to be better at servicing customers and how we can help them more. We know the business value of Amazon: it has anything you could possibly want, you can benchmark the price and then you’ll get it, no problem.

Our proposition is different: it’s about making our customers’ life easier at work. They don’t need to wait for two or three deliveries, there will just be one invoice a month, etc. But it’s without a doubt a competitor we are taking seriously and one that is pushing us to reinvent ourselves. That’s good.

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OPI: We nearly got to the end and only mentioned COVID-19 in passing so far. We did an audio interview with you in the early stages of the pandemic. With some hindsight now, how would you sum up the past ten months or so?

GL: Lyreco is a big boat which has been sailing for 95 years now. We’ve tried very hard to always operate efficiently, reinvent our business model when needed, and be flexible and agile. But doing that with this large cumbersome vessel and 10,000 people on board is difficult.

Being hit by a wave or a storm like COVID certainly wakes you up like nothing else. We’re cruising in different waters now and the steering of the ship has to be adapted accordingly.

I’ll give you an example. Pre-pandemic, we weren’t doing home deliveries. We knew homeworking was a trend and our innovations team was very aware of that, telling us the B2B world was changing and that we had to adapt to it.

So we knew and were kind of ready, testing out a number of things. When COVID hit, it was a no-brainer, we had to do it – immediately. So we did. It took us four days to start delivering to homes. It wasn’t perfect, but then we finetuned the solution over the next three months. If employees of a company that was a customer of Lyreco had to work from home, they could order directly from the Lyreco website, we would deliver the next day to their home and invoice the company as per usual.

It’s amazing how you can do things that you thought were impossible in an incredibly short timeframe. But you’ll only do it if there is no choice.

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OPI: Are home deliveries something that you foresee going on indefinitely, even post-COVID? GL: Yes. OPI: So it’s not too expensive long-term?

GL: That was one of our fears at the start, obviously, but we did an extensive analysis at the

very beginning, looking at all the data to make sure that it was feasible and it was.

Lyreco has its own fleet of trucks in most countries. Our drivers go through cities and drop their deliveries to residential addresses without a problem. Sometimes it’s even quicker because they don’t have to wait in reception for someone to receive the parcel, go up a lift or stairs, etc.

It’s amazing how you can do things that you thought were impossible in an incredibly short timeframe It’s all about density which, thankfully, we have.

If you have to drive 20 km between each drop-off point, that’s when delivery costs go up and timings don’t work anymore.

OPI: Another area where you had a real advantage was with PPE products, I believe, not least because of your growing expertise in this category due to the acquisition of Intersafe at the end of 2018.

Then we started hiring experts from the category, thinking that perhaps there’s more to it than meets the eye and we need to get a better understanding. This too worked, we had some successes and accelerated our market share.

Several markets, like Italy, did very well. Poland and Thailand were two other countries where we had good traction, but again, not fast enough.

The next step, we realised, was for us to actually acquire a specialist with a whole set of people who knew how to do it properly.

So at the end of 2018, we bought Intersafe to create a complete business unit to help us drive the penetration of PPE products within our organisation through a unique business model that we are currently rolling out.

BIG INTERVIEW Greg Liénard

GL: 100% correct. As I said before, Lyreco is a long-established company – we will turn 100 in five years’ time. Over that period, you learn that product trends are changing and what you’re selling today might not be relevant anymore a few years down the line.

Eric Bigeard (editor’s note: CEO of Lyreco until 2011) told me one of the key products Lyreco sold in the 1980s was carbon paper. In most countries, we don’t sell that at all anymore and only very little in some. Same with diskettes or CD-ROMs. Now we sell USB sticks instead.

About ten years ago, in 2010, we started to see that PPE products were more and more in demand from our customers. They were telling us that we were doing great when it came to general office supplies. We love you – thank you. But we also buy these products – can you help?

So we began the journey which ended up being taken in three separate sections. Initially we said: “It doesn’t look too complex, we should be able to do it easily”, and we decided to do it ourselves and to have PPE products in our catalogue just like any other item. It sort of worked – we got some positive results. But it didn’t happen fast enough and in line with our expectations and ambitions.

OPI: That acquisition must have been an absolute blessing for you when COVID-19 first struck and the world scrambled for PPE. GL: Yes, definitely. Our intuition back in 2010 was the right one. And while the circumstances of the benefits we’re seeing now are horrendous, we are thrilled about the fact that we have been able to support all the businesses and our customers with many of these PPE products when they needed them the most.

Intersafe CEO Yves Petin and his team brought us the necessary and valuable expertise we required to go through these unusual times.

OPI: Let’s talk briefly about Brexit and the deal that finally came to pass at the end of last year. What does it mean for your UK operation, which is presumably most affected?

GL: We were prepared and have a Brexit committee in the UK which, of course, is being supported at group level. Obviously, the deal that was struck has made our life much easier than once expected.

As of today, things are under control and we do not foresee a major impact. We buy most of our products locally and our suppliers have been doing a very good job to ensure no disruption.

For more from the interview with Liénard, such as the acquisition of Office Depot’s contract business in Spain or sourcing in COVID times, listen to OPI Talk – visit opi.net/podcast

January/February 2021

OPI: Once COVID-19 – and to some degree Brexit – have calmed down and are no longer hot topics, what’s next for Lyreco? Are you picking up from where you left off about a year ago when the world got turned upside down?

GL: Well, we’ve never really stopped. We’re hugely intent on delivering this strategy that I mentioned and which we’ve defined over the past few months during the pandemic. It’s ambitious and some of the components are going to take a little time and a lot of energy to implement.

The goal is to keep on getting share in the markets we are in now. The next big milestone is our 100th anniversary in 2026, so we’re hoping to blow out 100 candles and celebrate many more Lyreco achievements then.

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HOT TOPIC

KEEP the PEDAL to the METAL

For many, 2021 has started the same way 2020 ended – constrained by the pandemic. At the same time, trends that the business supplies industry was already contending with pre-COVID have been augmented in the past 12 months and are now past the point of no return – by Michelle Sturman

W

here to start? Ordinarily, a crystal ball-gazing article for the year ahead is relatively straightforward.

Put quite simplistically, look over the prior year to identify the ongoing trends and predict a few more.

Not this time. Hopes that the coronavirus pandemic would by now be under control and people would have started returning to the office in significant numbers have pretty much been dashed. Where does that leave us in terms of predicting how 2021 will pan out for the business supplies industry?

Needless to say, we do have an inkling of what could happen this year based on the previous 12 months, insomuch that we know the impact of COVID-19 on the office and educational environment and are dealing with it admirably.

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Business outcomes, short- and long-term, are dependent on control of the virus

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But perhaps more so than any year in recent memory, upcoming trends for 2021 are hard to forecast as COVID throws many variables into the mix. According to McKinsey's report, COVID-19 Briefing Materials: Global Health and Crisis Response, from 30 October 2020, this year will be dynamic with a new set of disruptions, leading to the planning cycle having to make assumptions based on key uncertainties.

As new coronavirus variants have begun to circulate, McKinsey's question mark over vaccines

and lockdowns in terms of effectiveness leading to a return to normalcy is even more significant.

Other factors include the impact of taxation related to bailouts; consumer demand; the ramifications of geopolitical events such as a new US president and Brexit; and the role of environmental and other requirements in the post-COVID world.

There is light at the end of the long, dark tunnel as the current vaccination rollout across many parts of the world will (eventually) curtail lockdowns and enable more freedom of movement.

AN AIR OF OPTIMISM As Darren Hayes, CEO of reseller Quick Corporate Australia notes, although we have positive news of vaccines, the challenge will be getting these out to all countries, not just the affluent ones. “Assuming we have nailed the vaccines, I believe the COVID journey is, even so, an 18-months to two-year play at best, and the ongoing issue of containment will continue to impact economic conditions,” he adds.

Raja Group Managing Director of Products, Purchasing & Supply Chain Alain Josse agrees with Hayes’ sentiment over the necessity for an efficient rollout of vaccines. But he is equally optimistic that even as the pandemic lingers during 2021, it will have less of a bearing on our industry.

In the US, there’s similar positivity that this year will be an upgrade, as Essendant CEO Harry Dochelli comments: “Business outcomes, short- and long-term, are dependent on control of the virus. Recent developments with vaccine approvals and distribution are very encouraging.

“If these efforts continue as planned, all the data points Essendant has been reviewing show we will begin to see a new normal take shape in late Q2,

HOT TOPIC What Lies Ahead?

early Q3. What this is going to look like is still very much up in the air.”

While the eventual outcome of the months to come is an unknown entity, there are key trends intricately linked to the pandemic that will carry on, namely working from home/flexible working (see also Research, page 46), e-commerce/ digitisation, and consolidation.

These represent several long-term movements our sector has been grappling with, but which COVID has exacerbated and accelerated.

ADAPT AND DIVERSIFY CEO of UK dealer group Integra Business Solutions, Aidan McDonough, says that independent dealers will need to pursue diversification of their product and service proposition, positioning themselves as business solutions providers. “Cleaning, hygiene and infection control, together with the work-from-home category, will continue to present opportunities.

Health and well-being in the home office will also be important, with ergonomic products, technology and furniture solutions being in demand,” he adds.

For Steve Carter, Managing Director of fellow UK dealer group Advantia, the key to success in 2021 is to keep adapting. “Find ways to service those working from home, offer an expanding portfolio of products and resources, and think about the delivery options that we have got hung up on for the past couple of decades,” he warns.

For a broad section of resellers, perhaps the most dramatic shift of 2020 was the forced metamorphosis into a nimble PPE and hygiene

January/February 2021

CHANGE FOR GOOD Many industry peers OPI spoke to for this article said the pandemic has ultimately led to progressive changes within their own businesses and the industry as a whole.

According to EVO Group of Companies CEO Steve Haworth, coronavirus has been both a catalyst for innovation and a positive reminder of the energy, commitment and passion that everyone has for what they do. He says: “Our industry has responded remarkably to the challenges it faced by moving quickly into further product areas and adapting business models to suit the ‘new normal’.”

Part of this transformation has been the increased adoption or expediting of e-commerce operations, which undoubtedly would have prevented many firms from going under throughout the crisis. As Ehren Madill, co-owner of Canada-based dealer Madill states, those not already doing most of their business online were far from in an ideal situation even before the pandemic. He also points out that being a one-stop-shop will make dealers more attractive, especially as some customers will be less inclined to visit a retail store or leave the office.

It’s a different story elsewhere. According to Rexel Office Products Managing Director Bill Bayley in South Africa, there has been a shift in terms of channel support due to coronavirus.

While bricks-and-mortar outlets have recovered and e-commerce retailers have, in some cases, surpassed 2019 sales, the OP channel has been hardest hit. Dealers have reported trading at anything from 50-70% of 2019 levels.

Conversely, several players within the local stationery and office products sector have fast-tracked their online selling capabilities such that they may compete with pure-play etailers.

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What Lies Ahead? HOT TOPIC

expert that takes significantly more orders online and has to deliver to home addresses. Until the pandemic subsides, this scenario is unlikely to alter. Even in a post-COVID world, it's expected that remote working as well as increased hygiene and sanitation will become standard working practices well into the future.

Says Craig Varey, Managing Director of UK reseller Banner: “The workplace and our working patterns and behaviour have definitely changed beyond recognition during 2020. We believe there will be three prominent shifts which will affect the industry this year and beyond.

These are flexi-work and worker well-being, consolidation of services, and the growing importance of cleaning and infection control.”

Dan Fati, co-founder of Romanian reseller Dacris, predicts that in the education sector, for example, old buying habits will quickly resume once schools reopen. That said, companies in other verticals will spend less due to unpredictable incomes. As a result, B2B sales will suffer.

“However, we still have a good opportunity to sell anti-COVID products and cleaning materials, or introduce a new business line for PPE.”

Much will depend on whether people realise that there will be no way back to the pre-COVID-19 situation

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Over in the US, the sentiment is the same.

Miller’s Supplies at Work EVP Mark Miller believes that without diversification of product categories, 2020 would have been devastating.

He adds: “Healthy companies will continue to expand their offering in non-office product items to recoup lost sales in the more traditional product lines. Consolidation within the industry will persevere as the pandemic causes some companies to question their viability.”

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REALITY CHECK Indeed, industry consolidation is as valid now as it has been for the past few years, likely more so. As this issue of OPI went to press, the news had just broken that Staples Inc was once again hoping to acquire ODP Corporation (see Analysis, page 6). There have been many such deals, large and small, across all channels in the past year.

Mark Leazer, Executive Director of US national accounts organisation AOPD, certainly believes the pandemic is fostering “an environment for more independent dealers to sell”. In the UK market, meanwhile, Nemo and Office Club Managing Director Tim Beaumont expects fewer resellers to be around, with the larger ones continuing to grow through acquisition. There will also be many businesses that do not survive the current crisis.

For more thoughts on the year ahead from the industry, including topics such as e-commerce, sustainability and the supply chain, visit the Magazine section on opi.net

A sobering reality check, but equally, the business products industry is a bullish bunch.

Innovative Office Solutions CEO Jennifer Smith, for instance, expects to see more of the same through Q1 2021, but is hopeful the pace will begin to pick up again from the second quarter onwards. “We’re cautiously optimistic that there will continue to be opportunities for resourceful dealers in the short as well as long term, as business gets back to an ‘improved normal’,” she says.

Dr Benedikt Erdmann, Group Chairman of German dealer group Soennecken, sums up the year ahead succinctly: “Any forecasts for a time after the pandemic are difficult and highly uncertain. Much will depend on whether people realise that there will be no way back to the pre-COVID-19 situation.

“The future of many companies and our sector as a whole will depend on whether we have the strength and the courage to take far-reaching, brave measures on the basis of this insight.”

ARE YOU READY FOR 2021?

Trend Hunter has released its 2021 Trend Report, filled with 100 innovations and insights covering all aspects of personal and professional life. Here are just a select few that could be significant for the business supplies industry in the year ahead.

• Appointment retail – Appointment-only retail shopping ensures safe in-person shopping experiences.

• Virtual marketplace – Marketplaces are now taking place virtually to keep people safe.

• Shopping locker – Contactless lockers enhance the safety of shopping experiences.

• Ergonomic furniture – Consumers seek adaptable pieces that offer simple transitions from professional to recreational as they continue to work from home.

• Seamless mask – Clothing items have integrated face coverings for ease of use.

• Milkman model – Waste reduction through circular delivery services.

• Bio furnishings – Environmentally-friendly, biodegradable furnishings are on the rise.

• Biometric health – Companies utilise biometric technology as a touchless health procedure to safely monitor health screenings.

• Antimicrobial extensions – Businesses eliminate unnecessary contact with portable gadgets that act as extensions of the hand.

• Live e-commerce – Live shopping experiences allow customers to view as their items are selected. It merges online purchasing with the interactivity of in-person shopping.

• Sanitation health – Post-COVID, hand sanitiser will be viewed as an essential skincare item with the increasing availability of upscale items.

• Distance design – Design and technology enforce physical distancing practices in public settings and include items like wearable workplace safety devices.

For more insights, visit www.trendhunter.com

OPINION

With a SIGH

of RELIEF…

S

o Brexit is finally done. The repercussions of the 11th hour deal that was reached at the end of 2020 will take a while to filter through. But the fact there is a deal is surely a good start for many operators in our sector with pan-European business interests. Mark Wilkinson provides an early assessment of what it all means from a manufacturer point of view.

What were your biggest concerns before the Brexit deal was reached?

A no-deal outcome, without a doubt. Had we not ended up with a deal, we would be seeing a period of confusion and disruption at ports, higher costs of goods coming into the UK in terms of tariffs, and supply chain delays.

We would also have expected a devaluation of our currency, at least for a period. This would have meant further costs for businesses which, most likely, would have had to be passed on to the consumer over time.

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Has the nature of the deal allayed all your fears?

The ones I’ve just referred to, yes. In terms of our industry certainly, what’s been agreed should allow us to carry on successfully importing and exporting goods from the UK, without the added cost of extra tariffs.

There are, of course, additional administrative expenses in having to treat goods coming in and out of the UK as true imports/exports. But these can be mitigated by using the right freight forwarders and customs agents as well as being sensible about making shipments of a meaningful enough value to make those expenses a relatively small part of the overall cost of the shipment.

We always took the view that deal or no-deal, we would have to transition to treating the UK as truly operating on an import/export basis with the EU post Brexit. At ACCO UK at least, we were already used to importing and exporting outside the EU, so the transition of doing this between the UK and the EU as well was a relatively straightforward, albeit time-consuming, exercise.

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What, if any, concerns remain?

Border delays could still happen early this year as freight volumes increase. And Brexit may yet exacerbate global issues already present, in terms of freight capacity and container shortages, trade imbalances between the UK and elsewhere, and of course COVID-19 working practices at ports.

Trading with the Republic of Ireland and Northern Ireland will be different. In Ireland, as we don’t have a meaningful physical presence there today, we have changed the terms on which we

trade. This means we have to work with customers differently in order to ensure we can get our products to market in the most cost-effective way for all concerned.

As regards UK goods going to Northern Ireland, it would appear that behind the government’s Trader Support Service is effectively a necessity to operate pretty much with full import/ export, reporting and accounting procedures. We therefore need to make sure that we have the right operating model in place to serve our customers in Northern Ireland going forward.

Mark Wilkinson, Regional VP UK & Ireland, ACCO Brands EMEA

What are the imminent next practical steps?

As I said, from about mid-2020, ACCO Brands EMEA took the view that, whatever happened, we would be exiting the EU and no longer be in the customs union and single market. A such, it was really a question of how much additional cost and administrative change we would incur.

It could have been far worse with a no-deal outcome, so my overriding thought is that of mild relief at this point Contrary to a lot of commentary from business leaders, the government guidance on this was fairly clear: you had to put in place the systems and procedures to import and export from the EU. We do that anyway, to and from other parts of the world. As such, there are not many more practical steps we need to take, but obviously, we’ll monitor the situation closely to make sure no, as yet unforeseen, issues can escalate. Overall, I think we are in good shape.

Will prices go up for goods imported into the UK from the EU? Not at this stage. We may see increased prices in the medium term, due to higher freight costs, but this is more due to global trade issues. Our currency is stable and tariffs for the UK have been avoided with a deal, though some administrative costs around importing and exporting have risen.

It could have been far worse with a no-deal outcome, so my overriding thought is that of mild relief at this point.

INTERVIEW

RISEN from the ASHES To say it’s been a difficult year for the fledgling OT Group would be an understatement. But under its new parentage and with a solid heritage to boot, it’s been given another lease of life

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ne of the biggest stories of 2020 was the demise of the Spicers-OfficeTeam (SPOT) Group in the UK and the sale of various of its assets to Ireland-based Paragon Group. From the outset, business and customer communications specialist Paragon might seem an odd new parent. What could this diverse €1 billion+ ($1.2 billion) acquisitive, fast-growing company with a presence in 20 countries and 9,000 staff possibly have in common with a struggling UK business supplies reseller and distributor?

More than meets the eye. At the end of last year, OPI spoke to Paragon CEO Sean Shine and outgoing OT Group CEO Steve Horne (see also ‘New CEO for OT Group’, page 32). During this chat, part of which took the shape of an OPI Talk podcast first broadcast in mid-January, Shine talked about an overlapping customer base in the UK, a common interest in technology and a desire to offer a better digital experience to all customers.

Having given some Paragon background and a round-up of SPOT pre-COVID and pre-administration, the conversation moved to early May 2020 – several weeks into the coronavirus pandemic – when Paragon made its initial offer for OfficeTeam and ZenOffice. Soon after, the newly-named OT Group launched a wholesaling division called OT Wholesale. Then, still in May, Paragon also acquired Spicers Ireland.

A new era had begun and this is where we’re picking up the discussion. (To listen to the first part of this interview, the podcast, through your browser, visit opi.net/podcast).

OPI: Steve, let’s begin with you. Heading up a business in considerable distress can’t have been easy, especially with so many jobs on the line. What were your hopes when Paragon bought the various assets?

Steve Horne: It wasn’t. We were obviously deeply concerned about our staff and their future, but also about our customers and letting them down, and our supplier partners.

I won’t go through the whole administration and sales process again – it’s been well documented – but let me just say that I don’t think there could have been a better home for what’s now OT Group.

With Paragon, we have a partner prepared to invest in the business – a relief bearing in mind the whole of the SPOT Group previously was woefully underinvested in, from a people, products and systems viewpoint. It’s also very ambitious in terms of where it wants to go, so as difficult as things were, we’ve ended up in a much better place.

OPI: How many jobs did you manage to save?

SH: We had 1,100 people pre-administration, roughly. We managed to save 50% of those coming through the pre-pack. The largest chunk of colleagues lost was when we took the logistics infrastructure out of OfficeTeam and moved it to a courier service. That eliminated 15 small, local distribution centres, the fleet and drivers.

It gave us a much more variable model to deliver, but it came at the expense of staff that we lost.

OPI: People on the wrong end of a pre-pack – often the creditors – typically loathe the

From left: Sean Shine and Steve Horne

dropped considerably as so many of our key customers have moved to homeworking.

Rather than dealing with a multitude of expense claims, being able to buy on the company’s terms and get a consolidated invoice is incredibly valuable for them.

OPI: What about the cost of fulfilling these orders though?

SH: Cost to serve is cost in the basket. We have a delivery charge if it’s under £30, so most people at home will wait and build up the basket and order over the £30 to get free delivery.

Our strategy pre-COVID was to extend the range on SmartPad and it almost becoming a marketplace. We will not stock more than we stock today, but we can have customers on a drop-ship with proper, systemic management of that drop-ship, being able to see what the price is, when the delivery will be, etc.

It’s also about data. Pre-administration, our focus had been on the Spicers catalogue, while today we’re enriching the content on SmartPad – with product features, videos, and the like.

At some stage this year, a massive amount of tenders will hit the market as businesses spring back to life. These companies will be looking at their whole supply chain and cost base. That brings opportunity.

OPI: Does SmartPad integrate with solutions like SAP Ariba and Coupa?

SH: Yes, it punches in and out of those systems.

OPI: Last December, EY published a document regarding the Spicers administration. There was reference to some further IP assets having been acquired. Among those was the Spicers name. And guess what – OT Group was the buyer. Could we be seeing the Spicers name again in the UK market after all?

SH: You’re right, the Spicers name and some of the IP around that was acquired. More than anything, we did this to protect the name.

SS: We don’t have an explicit plan at this stage, but I would have been very uncomfortable if somebody else were to put up a Spicers sign.

OPI: You still have the 5 Star brand. Are there any opportunities to expand the brand

January/February 2021

OPI: In what areas do Paragon and OT Group best complement each other? Surely not office supplies wholesaling. How attractive was the commonality of your customer base when the purchase option presented itself?

SS: That was definitely important, as are some crossover service opportunities. The current homeworking trend is a great example. We launched OT Group’s SmartPad to our customers at the beginning of January.

This online procurement tool effectively allows corporate businesses to put in place a facility so that their employees can buy office supplies at home and for the billing to be handled centrally. It gives companies control of purchase – by product, budget or transaction, however they want to put that particular member of staff in control.

Historically, the way many companies have been working – especially from a work-from-home point of view – is that employees buy what they need, put it on their expense account and then get reimbursed. With this new system, they have direct authorisation to buy defined products at a defined price.

This is just the first wave of what’s possible.

Now we have the capability, it’s easy to add new features and do so at speed. I’m confident SmartPad will be a real differentiator for us this year and going forward. But this is not some kind of ‘wow’ gadget, it’s a tool – like a calculator, functional and easy to use – that will become an integral part of our infrastructure.

SH: SmartPad has been key for us during the pandemic. It has allowed us to infill at least in part where order volumes would otherwise have

OT Group

OPI: Sean, an investment of £2 million ($2.7 million) seemed a bit of a steal, considering the assets you picked up, and also the heritage that came with OfficeTeam in particular.

Sean Shine: I hear what you’re saying, but it was far more than the original purchase price.

The investment was considerably bigger, as we covered the costs of everything that followed the acquisition – dealing with redundancies, moving infrastructure, investing in new systems, etc.

But you’re absolutely right about the heritage OfficeTeam brings to the table. Customers and customer relationships are really important to Paragon, as is an organisation’s culture, so OfficeTeam is a great fit for us.

INTERVIEW

situation they find themselves in. What would you say to your vendor partners and those reading this article Steve? Many of them ended up being owed an awful lot of money.

SH: We’ve issued many apologies, absolutely.

I am really thankful for the support that every supplier has given us, back then and still now.

Some of that support has been progressive, simply because we have had to earn their trust again.

We are now trading with all our pre-COVID suppliers and I’m confident we’re building up a good reputation again. We’re paying on time, growing sales and having conversations about how we can develop what we sell and move forward.

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OT Group INTERVIEW

into continental Europe? 5 Star was very well known in certain European markets for many years under Spicers Europe and also ADVEO, but that came to an end when ADVEO developed its own private label.

SH: Our initial focus is to develop 5 Star in the UK and I think there’s plenty of opportunity to broaden its appeal by introducing new product ranges and marketing it right.

OPI: From an OT Wholesale perspective, what proportion is the 5 Star range compared to the branded products portfolio?

SH: 40-50% of our wholesale business is 5 Star.

OPI: Also from a wholesale point of view, where are service levels currently, especially given that you are using third-party carriers?

SH: They are not where we want them to be yet. Not having our own fleet has been a factor, of course, but moving the operation into one warehouse and settling that down has caused some teething issues, too.

We now have a customer service platform called Zendesk whereby every issue raises a ticket so we can monitor exactly what the impact is. Week on week, we’re seeing declines in the number of tickets generated. It’s all about working in partnership with our third-party partners, going into the small detail of where the problems are and fixing them.

Having such a high volume of home deliveries in the past few months hasn’t helped, but everybody is in the same boat with that scenario.

OPI: Let’s look at the wider picture for a moment. You joined EOSA in October and became the purchasing group’s first UK member in 11 years. What benefits do you see?

SH: We’ve had discussions with EOSA for quite a while, long before Paragon got involved. We’ve always believed that being part of a European

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NEW CEO FOR OT GROUP

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Just a few weeks after OPI’s interview with Sean Shine and Steve Horne, it emerged that Horne will soon be stepping down from his CEO position at the OT Group. As Horne said: “In spite of the third national lockdown, we are slowly returning to ‘business as usual’ and this time we are well prepared for the challenge of the next few months.

“I feel that now is the right time to announce my departure. The senior team at OT Group have a strong and ambitious growth plan for 2021 and, with the backing and full commitment of our parent company Paragon, I leave excited and optimistic for its future.”

Horne’s successor comes from within Paragon’s ranks. Incoming CEO Andrew Jones (right) has been the UK General Manager/ CEO of Paragon ID (PID), one of the firm’s three core business entities, since 2017. During his period in charge, PID UK grew both its sales and profitability, while Jones also oversaw a number of key acquisitions.

buying group could bring benefits in terms of pricing, especially given the contracts EOSA has with some key suppliers.

That said, these talks became more advanced post acquisition as, being part of Paragon, suppliers in the alliance had more confidence in us. But it’s not just about the buying aspect, it’s also about sharing knowledge and best practice – EOSA has a great reputation in that regard.

Our initial focus is to develop 5 Star in the UK and I think there’s plenty of opportunity to broaden its appeal OPI: What are your targets for 2021 for OT Group and Paragon?

SS: As a very generic answer, within Paragon Group, it’s always been our ambition to double in size every three years. As I mentioned in the initial podcast chat, our core focus is constantly on our customers. If we can give them exactly what they want and get the service absolutely right, then they will hopefully stay with us – we pride ourselves on our incredibly long-standing relationships. That’s the organic part.

But, as you know, we are also a hugely acquisitive operator. We typically acquire 10-15 businesses per year and have done this for the past 5-7 years. And that’s certainly the plan going forward – it’s how we work.

OPI: So with Paragon’s deep pockets, could OT Group be acquiring at some stage? It’s a very challenged market in the UK right now and there might be some opportunities in 2021.

SS: Who knows? That’s all I can – or want to – say!

CATEGORY UPDATE

Education

FRUSTRATION

Disrupted on an unprecedented scale – that aptly describes the global education sector in 2020. It’s been a relentless learning curve for many, punctuated by glimpses of hope and opportunity – by Heike Dieckmann

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oing back about ten months, OPI was due to publish its annual update on the education sector. It talked, among other things, about teaching methods in classrooms across the world, garnered from a visit to the always fascinating annual Bett Show in London, UK (moved, predictably, to an online event this year). It also highlighted the ever-growing focus on education technology in both emerging and developed markets.

This was all well and good. Then coronavirus happened and we had no choice but to postpone publication of this feature by a few weeks and add at least a short up-to-date assessment of this vertical as it had evolved (see Category Update, OPI May/June 2020, page 38). The biggest change, of course, was that the venue of learning had changed for many – all the way from nursery and pre-school to higher education students – with the home as the new location and the laptop the means to access education.

The months that followed were marked by upheaval and sporadic bouts of optimism. Most recently, as the virus has continued its rampage around the world’s population, there’s been more upset and uncertainty for pupils, educators and parents alike.

For those selling into the sector, it’s been an equally unsettling scenario. As Mike Crosby, Industry Analyst B2B Tech at US research firm The NPD Group, asserts: “With the onset of the pandemic, education faced some of its

most daunting challenges in history. The sector had to completely rethink even the basics, from on-premise learning and the changing of hygiene and student concentration protocols, to constructing a functional, remote learning infrastructure able to provide a consistent platform of learning regardless of income or status.”

With the onset of the pandemic, education faced some of its most daunting challenges in history CHANGING DEMANDS Sarah Hunter, Managing Director of Melbourne-headquartered Officeworks – a city incredibly hard-hit by the pandemic – provides a synopsis from the reseller’s point of view: “We worked hard to ensure that students and teachers across Australia had the required materials to navigate online learning and continue their education – from laptop PCs, tablets and desktop computers through to educational resources, desks and chairs. We saw growth in the popularity of education resources and arts and craft supplies, as parents homeschooled and were looking for ideas to keep their children entertained.

“Other popular products included workbooks and educational activity books, watercolour paints and butchers paper, chalk as well as merit stickers to encourage great work. Whiteboards were also a

students required their own products like scissors, sharpeners and coloured pencils. Conversely, we also saw reduced demand for some, usually popular, items as children used what they already had available at home.

“Maped-Helix is not as widely recognised in the US as some national brands, but we are internationally known for providing high-quality and innovative products. We’ve been able to step in to supply items these brands couldn’t because of volume, quality or price issues.”

We went from selling one or two electric pencil sharpeners per classroom to one handheld one per student

CATEGORY UPDATE Education

popular product for parents setting up a space for their children to learn.”

It was a case of adapting – and sourcing – fast, often for the most traditional of products. Gary Trowbridge, CEO of Palace Business Solutions in Santa Cruz, US, recounts his experience: “Over the past 20 years, Palace has built a successful just-in-time model selling office and school supplies, janitorial products and school furniture to over 60 school districts in California. We have experienced account managers and a custom school catalogue that we produce every year.

“But everything changed in March 2020. All the schools in California were required to move to remote learning. They went from ordering a wide variety of items to be shared in a classroom, to procuring a set list of individual supplies for each student, and putting together kits for pupils to use at home. We went from selling one or two electric pencil sharpeners per classroom to one handheld one per student. No one was prepared to sell in such mass quantities. We did not have enough product in our warehouse, nor did our distributors or manufacturers.”

Maped-Helix USA can confirm the challenges around securing supplies. National Sales Manager Michael Drell explains: “The pandemic has affected the global Maped company and specifically Maped-Helix USA in virtually every way – our raw material suppliers, and company-owned as well as partner factories. We also saw our customers’ businesses and distribution channels severely disrupted.”

While on the one hand, there was a lot of surplus inventory, some products, as Trowbridge mentioned, were high in demand and difficult to source. They were either bought for each home learner or ordered in larger quantities because shared supplies were no longer allowed in the classroom. Drell explains: “All of a sudden, all

MOVING GOALPOSTS What manufacturers and resellers alike were having to deal with – and still are – is the uncertainty over where the learning takes place – which makes predicting demand and determining the actual buyer hugely challenging.

Dana Flaherty is President of CSI Connect Marketing, a Florida-based marketing specialist with expertise in the education segment.

Approximately 90% of its business comes from this vertical, selling to traditional education, office and furniture dealers across the US. He explains: “One of the main issues is whether schools and districts have opened. In areas where they are, retailers have found many new ways to engage the customer. Facebook, kerbside pickup, FaceTime appointments, text message requests and online ordering are a few ways through which they have remained successful.

“In places where schools are still shut for in-classroom learning, retailers are dependent on the parent more than the teacher to purchase

January/February 2021 35

Education CATEGORY UPDATE www.opi.net 36

products that can engage children to continue the learning process.”

In terms of its customer base, he adds: “Our focus on education has not changed, but our direction has been modified somewhat. We have reached out to education dealers in different ways to market to their customers during COVID. Everybody is struggling.

“Our aim is to teach dealers how they can create new ways to interact with their customers during these difficult times and in the future. We have grown our CSI Connect Marketplace, for example, to help them offer their customers Facebook and email marketing provided by our manufacturers.

Our vendor partners have put a lot of focus on promoting purchases through a local dealer.”

THE NEED FOR DIGITAL One manufacturer that is also highlighting the importance of an enhanced digital presence is The HON Company. As Brand Marketing Manager Benjamin Daufeldt says: “2020 saw an exponential increase in customers demanding the ability to order online, which in turn has accelerated the need for more extensive digital tools in the selling, marketing and e-commerce space.

“Because sellers haven’t been able to communicate face to face, this has been a tremendous opportunity for us to introduce new products through digital trade shows like NeoCon and EdSpaces, as well as multi-session digital training with trade partners.

“The education business has been very important to us since the inception of our SmartLink product line in 2010. During COVID specifically, HON was nimble to respond to the fast-changing demands of our commercial and education customers. We manufactured products out of our comfort zone like hand sanitiser stands, custom acrylic desktop screens, and so on.

“In terms of digital tools, we focused on providing insights for school administrators in the form of webinars as well as offering information on returning to school safely, and rethinking and re-visualising how furniture may be used differently during the pandemic. Last October, we hosted our first-ever EdExperience event where we invited trade partners and end customers to join us for sessions with experts across a range of topics.”

This aforementioned focus on PPE and safety has clearly been crucial in education establishments, especially since it’s been one of the few sectors that has tried very hard to remain open in some capacity at least. And it helps if an operator has experience in both the segment as well as the product.

As Kim Leazer, CEO of FSIoffice, says: “We were already very heavily involved in the education market prior to COVID, and we definitely saw a shift from some of the typically purchased items to PPE products, thereby allowing schools to navigate the rotation between in-person and virtual learning.

“We were extremely fortunate to have moved aggressively into the facilities category over the past several years under the direction of our

Director of Facility Sales Cris Goodman. During the crisis, Cris worked closely with our Director of Purchasing Doug Whetstone and our EVP Beth Freeman to build on existing relationships and establish new partnerships, giving FSI early access to the PPE product category.”

Some companies more at home in traditional classroom supplies have also grasped the opportunity in the face of considerable adversity.

One such player is France-based group Exacompta Clairefontaine.

Exacompta Clairefontaine’s new antimicrobial notebooks

2020 saw an exponential increase in customers demanding the ability to order online As Lawrence Savage, Marketing Manager of ExaClair in the UK, says: “We early on during the crisis identified the need to maximise our adaptability within our sales and distribution channels. This also applied to new product development. We initially launched a wide range of Exacompta PPE, followed by the introduction of our Clean’Safe desktop accessories and filing products. These lines have since been complemented by a selection of antimicrobial Clairefontaine notebooks to further mitigate cross-contamination fears.”

POSITIONED FOR THE FUTURE While the current challenges in the education market are enormous, it is also believed that it will be one of the first sectors to recover. Sheer practicalities and economic reasons aside, many studies confirm that students learn better in the classroom than at home.

As and when a sustained recovery occurs, all players in this vertical are set to benefit: with better acumen in the digital space, a renewed and expanded product focus, and perhaps reinvigorated customer relationships.

For more feedback from manufacturers and resellers on their experiences in the education category, please visit the Magazine section on opi.net

2020, in the northern hemisphere at least, saw a back-to-school (BTS) season like no other. From full returns to school and rotational learning (to minimise numbers at any one time) to continued remote schooling, educational establishments in districts, states and countries have faced upheaval and disruption in the run-up to the new academic year.

Gary Trowbridge, CEO of US-based Palace Business Solutions, says: “Our BTS season usually starts mid-July and runs through September, with a steady stream of orders from school administrators and teachers. Some schools will send in orders at the end of the academic year, to be delivered at the beginning of the next, allowing us to get a jump-start on filling orders.

“It didn’t feel like we had an actual BTS period in 2020. Instead, it was a stop and start of a series of large orders for school kit supplies and PPE items, intermingled with smaller orders.

“Unlike in ‘normal’ years, our sales people weren’t focused on promoting school supplies, but instead were selling air purifiers, personal space barriers, and as many PPE products as they could quote. With most schools ordering the same items in large quantities, it became a race to see where we could source items, and how quickly we could deliver them to our customers.”

It didn’t feel like we had an actual BTS period in 2020 MIXED FORTUNES DOWN SOUTH In the southern hemisphere, meanwhile, the BTS season is – or should be – currently in full swing, with students due to go back over the course of January. In South Africa, for example, state schools were scheduled to reopen on 25 January, about two weeks later than is the norm.

This, says Craig Noyle, CEO of dealer group Inovocom, has already had an impact on the BTS season, as relevant purchases are being delayed by parents. With incomes under severe pressure in a country that is currently ravaged

by COVID-19 and where government financial support schemes are limited, schools and parents alike are also reusing supplies from the previous year wherever possible.

He adds: “All this makes it incredibly difficult for suppliers as the volumes required are unknown until the very end. Early predictions for our group indicate that the BTS season will be within the 70-75% range of 2020.”

In Australia, meanwhile, schools are set to reopen as planned in late January. And while the BTS season per se has been fairly solid, according to Office Choice CEO Brad O’Brien, surplus product as a result of a highly disruptive 2020 means that overall unit sales are pretty flat.

January/February 2021

DOWN ON THE DOLLARS According to The NPD Group’s Retail Tracking Service, the typical BTS season in the US accounts for 35% of annual dollar sales and nearly half of annual unit sales for retailers and manufacturers selling office and school supplies.

2020 was different.

Overall office supplies sales, excluding revenues from janitorial and breakroom products, declined 10% for e-commerce and bricks-and-mortar retail combined for the 13 weeks ending 19 September 2020 versus the previous year.

This, asserts Leen Nsouli, Executive Director and Industry Analyst Office Supplies at the firm, was due to several factors, including a later start to the school year for many as COVID taskforces solidified reopening plans. “This, in turn, delayed the distribution of school lists, which act as a trigger for parents and families to begin their shopping.

“By September, nearly 60-70% of K-12 students in the US were starting school remotely.

As a result, we saw delayed purchasing of supplies into September and even into Q4. By mid-November, over 50% of respondents to our Future of Office Supplies survey had indicated that their school district was planning to continue e-learning for the near future.”

In line with all shopping habits in this COVID-dominated year, online sales surged in this category and BTS was no exception, with in-store sales declining by 18% in the period and online orders up 34% (44% in September alone).

From a manufacturer’s point of view too, it was all change. Deflecto, for instance, has been involved in BTS through its retail partners for many years – primarily for storage and floor protection products. But last year’s season was atypical in several ways, says Global VP of Product Management and Marketing Maggie Waples: “There were plenty of delays and much flip-flopping around. We also had far more requests for proposals going through our distribution network rather than in-store/retail.”

And, as Trowbridge mentioned before from a reseller perspective, much of the focus has been on PPE and safety products. School desk barriers, touch-free hand sanitiser dispensers, face shields and social distancing signage were top of the shopping list – many of these developed and brought to market fast by the likes of Deflecto.

CATEGORY UPDATE Education

BACK TO LEARNING, BUT BACK TO SCHOOL?

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CATEGORY UPDATE

The write

MOMENTUM

Despite the turmoil of 2020, the writing instruments sector has rolled with the punches through product innovation and embracing the digital world – by Michelle Sturman

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ou may be forgiven for thinking the writing instruments category would have been down on its knees over the past year. Thankfully, and perhaps surprisingly, leading manufacturers have come through 2020 relatively unscathed.

Sure, the coronavirus pandemic has thrown a few curveballs at the sector – like every other – but as a traditional segment already wrestling with issues such as an increasingly digital world, it was able to deploy some nifty and creative moves to help weather the COVID-19 storm.

Pentel, for example, has introduced an antibacterial pen. It includes silver ions to inhibit the growth of bacteria which help prevent spreading on the pen. Commenting on the launch, Pentel UK Marketing Manager Wendy Vickery says: “Our new Superb Antibacterial ballpoint pen will become a welcome problem-solver in situations where it might otherwise have been advisable to sanitise writing instruments that are likely to be shared.

“Awareness of public hygiene has been awakened during this pandemic, and we firmly believe good cleanliness practices are here to stay, even after the current crisis recedes.”

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UPS AND DOWNS The effects of the coronavirus emergency on the category should not be understated, but where sales declined in one area, they grew in another.

So, while revenues for the office and education

markets fell, those in the arts and crafts category rose. Says BIC Europe General Manager David Cabero: “2020 was strongly shaped by the impact of COVID. We saw a big interest in colouring as well as arts and crafts products and activities. This was largely driven by parents looking for offline activities for their children during the lockdown periods, but also by adolescents and adults who wanted to express their creativity.

“Sales of writing instruments, on the other hand, were in decline as a result of school closures, remote working and the temporary shutdown of specialised stores.”

For the most part, vendors had headed into 2020 on a fairly stable footing. Zebra Pen started with a “healthy year” that carried into March when COVID began to spread, according to the company’s Director of Marketing Ken Newman. Pilot Corporation of Europe enjoyed a similar position, while Stabilo looked set for its best-ever year.

As Stabilo CEO Horst Brinkmann told OPI, a good starting position helped during the crisis. As a result, the company managed to grow by 1% in a shrinking market (-4%) and close fiscal 2019/20 at €194.1 million ($239 million), almost at the prior-year level.

It’s not all been plain sailing, however. BIC, for instance, reported challenges which left its Q3 2020 Stationery sales down by 17.8%, primarily related to the pandemic. “We have seen an impact on our sales performance, notably in emerging countries such as India, Brazil and Mexico, as well as in the convenience and traditional store and office supplies channels,” says Cabero.

THE WFH IMPACT The ongoing work-from-home (WFH) trend has also governed sales and marketing for those involved in the writing instruments sector. Uni-Ball Corporation North America – which started anew with its wholly-owned Mitsubishi Pencil Company subsidiary business model on 1 Jan 2020 – expects the WFH shift to continue, albeit not at the same level as last year.

“Based on The NPD Group data, we know that the commercial dealer channel has shown an outbound sales decline of over 30% due to COVID. The expectation and hope are this will turn around in 2021.

“Listening to our partners, and considering the WFH trend, we are launching ‘Work from Home desktop solutions’ across all of our major product lines,” says Director of Marketing Jim Holland.

He further points out that working from home has revised, in part, buying decisions. “They have moved from a centralised company approach to an individualised consumer taste/preference model, where employees no longer have to just use what’s supplied. We see an uptick in more design and colour assortments outside of the standard black, blue and red pens.”

Urban Martell, VP of Pilot Corporation of Europe, agrees, but warns that while the current shift to WFH represents a durable trend, it might reduce from its present status as we move out of the pandemic and employees head back to the office.

Writing Instruments CATEGORY UPDATE

“An enduring change in working habits could have an effect on the buying process and may drive a transfer of purchases from traditional office suppliers to more flexible and individual shopping alternatives such as online,” he adds.

Martell believes on a mid- to long-term basis, such developments could additionally provide an opportunity for growth. He explains: “If professional users can choose their supplies and buy directly, they will consume certainly less in quantity. But they will likely look for better quality and branded products, more adapted to their needs and specific usage.”

FROM STORES TO ONLINE The transfer of business to online platforms was swift from the start of the crisis and Zebra Pen’s Newman expects the ease and convenience of e-commerce to carry over into 2021.

Stabilo’s Brinkmann is in agreement, adding: “Consumers are seeking more individualisation and classic retail channels are losing out to e-commerce. Direct conversion from social media communication with one click to an online shop is also becoming popular and more important.”

BIC certainly saw exponential growth in its e-commerce channels, whether through its website, pure online players or traditional retailers with e-commerce capabilities.

With physical stores closed in many geographic areas across different periods of 2020, more back-to-school (BTS) purchases were also made online. But, as Newman points out, 80% of consumers still bought BTS writing needs via bricks-and-mortar outlets.

The education market as a whole underwent drastic changes related to the pandemic due to the shutdown and subsequent delays in reopening educational institutions, leading to significant time shifts in BTS purchases. (For more on the education sector and the BTS season in particular, see Category Update, page 36).

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DIGITAL INTEGRATION Yet, the writing instruments sector is nothing if not resilient – past years have shown this – as it deals with the unfettered rise of digital technologies in the home, workplace and academic facilities.

And instead of resisting the technology era, the category is embracing it by continually finding unique ways to remodel products to fit current and future use.

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Staedtler’s Noris digital jumbo stylus

BIC is a good example, having acquired smart and reusable notebook brand Rocketbook. “The digital writing segment is a fast-growing market and Rocketbook’s innovative products, coupled with BIC’s industry expertise, retail reach, and global footprint offers substantial growth opportunities,” Cabero told OPI. He continues: “This acquisition will solve a major challenge for many stationery consumers, providing a way to write that can be easily stored and shared in a quick, efficient and environmentally-conscious manner.”

An enduring change in working habits […] may drive a transfer of purchases from traditional office suppliers

Pentel’s Superb Antibacterial pen

For more from OPI’s interviews on subjects such as sustainability and social media in the writing instruments sector, visit the Magazine section on opi.net

Integrating digital with traditional has never been more important than during the pandemic, with millions of children and students having been moved to online learning. The Stabilo EduPen, for example, continues to collect awards, including – most recently – the Bavarian Innovation Prize 2020 from the Bavarian State Government.

Meanwhile, last June, fellow German writing instruments manufacturer Staedtler launched the Noris digital jumbo stylus which includes an eraser at the end and can be used on smartphone, tablet and notebook displays.

For BIC, the digital march doesn’t stop with products. The company is utilising AI and machine learning to identify and match consumer needs and trends with new technologies in combination with its own insights.

Explains Cabero: “Last June, we launched the BIC-Iprova Invention Lab. Using these tools, we can identify technologies that are emerging in other industries, which could be relevant for us to meet the needs of our consumers.

“We have integrated this groundbreaking approach internally to enhance and accelerate the inventiveness and creativity of our scientists, engineers and designers. What took years in the past can now be achieved in a matter of weeks or sometimes just days.”

ADVERTORIAL

From BOTTLE TO OCEAN to PEN A new initiative – and product line –

by PILOT Corporation joins the fight against plastic pollution

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ILOT’s sustainability focus goes back many years. With its latest range, the company is helping to tackle one of today’s most pressing environmental concerns – plastic pollution in our world’s oceans.

Urban Martell, VP Sales & Marketing of PILOT Corporation of Europe, talks to OPI about the Bottle to Pen (B2P) Ecoball and its positioning in the vendor’s BEGREEN range.

www.opi.net

OPI: You’ve just launched a brand new product initiative. Tell me about it – what’s different?

Urban Martell: The B2P Ecoball is a newcomer to the iconic PILOT B2P range. As all other items in the assortment, the Ecoball is made of post-consumer recycled plastic, coming mainly from bottles.

What is new with this product is that PILOT Corporation has decided to take a further step in the fight against plastic pollution by adding 2.5% reclaimed ocean plastic into the 86% of recycled plastic material that is used for the pen.

On top of this, the Ecoball contains a minimum of additives and colouring agents in its composition, in order to reduce the impact of the production process on the planet as much as possible. And, of course, the Ecoball is refillable – like 63% of all pens made by PILOT – which makes it not only more economical for the end user, but also more ecological than disposable pens. Refilling it three times saves up to 85% of CO2 compared to using four disposable pens that are made of virgin plastic material.

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OPI: It’s interesting that you introduced this product during a period when the whole plastic debate seems to have taken a bit of a backseat due to COVID-19.

UM: Well, PILOT’s environmental engagement is nothing new, as you know. The products we make are mainly made of plastic, so it is natural for us to continuously investigate every possible option that reduces the consumption of virgin plastic material. We are constantly working to improve our processes and products.

We were the first manufacturer to launch a complete range of sustainable writing instruments, the BEGREEN line, almost 15 years ago. Our sustainable approach can be summed up in four words – Do Better With Less – and is embodied by our ‘3-R’ policy: recycling, refilling and reducing.

The launch of the B2P Ecoball is perfectly consistent with our strategy and will contribute to reinforce it by adding a new ‘R’ – recuperating plastic waste from oceans.

OPI: How did the idea to incorporate ocean plastic in your pens come about?

UM: We were approached by TerraCycle at the end of 2018 and the proposal immediately caught our attention.

TerraCycle is a world leader in the collection and reuse of non-recyclable post-consumer waste and works with over 100 major brands in 20 countries. We knew about this company before and had some contacts in the past, but never cooperated with it before the Ecoball project.

TerraCycle has been a great partner, providing us with facts about plastic pollution worldwide and helping us to formulate and adjust our message, so that we can make it completely transparent and understandable.

The company has also given us useful technical feedback to support the manufacturing process.

Using this recuperated plastic material in our pens, while at the same time maintaining PILOT’s quality standards, has certainly been a challenge, and has required time and many trials by our engineers to achieve the final, high-quality result

OPI: Where is the Ecoball being launched first?

UM: Rollout has started in Western Europe and the Nordic countries. But it’s not just a European initiative; our headquarters in Japan has launched the concept at the same time. It’s a slightly different pen compared to the European version, because it’s adapted to local consumer preferences.

Other PILOT markets across the world will follow in the next few months.

OPI: Do you have a particular customer demographic in mind for the Ecoball – what is your core target audience?

UM: Originally, our primary target were professional consumers looking for environmentally-sound pens, in line with their companies’ sustainability policies.

However, we have seen a growing number of consumers in the marketplace with positive attitudes towards green products and socially responsible practices.

COVID-19 and the resulting sanitary focus have shown clear parallels with the climate emergency, prompting many brands to act and get engaged.

The younger generations – Gen Z and millennials – are more likely than any other demographic to use eco-friendly products.

So, to answer your question, we will make the B2P Ecoball available to every single consumer.

OPI: By that rationale, your routes to market will also be very broad.

UM: Absolutely. The product will be distributed through all channels – online, through retail and mass market shops, B2B stationery catalogues,

DO BETTER WITH LESS: PILOT’S 3-R POLICY RECYCLING – turn old into new by utilising recycled plastic material in the manufacturing process.

REFILLING – use fewer disposables to extend a product’s life duration.

63% of PILOT’s assortment are refillable writing instruments.

REDUCING – use less plastic by, for example, working with recycled carton material in packaging.

you name it. It will first be available online on the major shopping platforms from February and then gradually be rolled out to all other channels.

OPI: With that in mind, I guess your marketing initiatives will be equally comprehensive?

UM: Yes, marketing campaigns are planned – and have started already – across all types of media.

Social and professional networks will be a major axis of communication, as these are the prominent go-to places for our customer base. We are also in the process of finalising a short film – fun and easy to understand – that we will use in social media and which our distribution partners can use to promote the product.

OPI: Aside from the pens themselves, how does your packaging fit in with your green policies?

UM: I mentioned our three ‘R’ approach earlier.

One of them is ‘reduce’. Our pens are sold in boxes that are made of recycled carton material.

Back in 2009, we reduced by six the amount of plastic in our blister packs for the mass market channel. We are constantly striving to, step by step, phase out plastic completely in our packaging whenever possible.

In 2019, for example, we introduced a 100% plastic-free blister pack for our BEGREEN range.

We have also replaced the plastic pouches that we historically used to protect our pens when sold online by a new flowpack made of paper coming from FSC-certified forests.

The complete BEGREEN range, including B2P Gel and the new B2P Ecoball, is sold with these sustainable packaging solutions. All of them are 100% recyclable.

January/February 2021

OPI: Let’s talk a bit more about your BEGREEN range. You first launched this line in 2006 and all products in it are made from at least 70% recycled plastic. The flagship product of this assortment has been the B2P for many years I believe. Why did you feel you needed to further expand on that?

UM: You’re right about the flagship item when you mention the B2P. First of all, it seemed logical to us to enlarge the choice we offered.

But also, the problem of plastic in our oceans and on our shores has become a global concern, so we wanted to do all we can to help in the fight against this pollution. I talked about our partnership with TerraCycle. The organisation recuperates plastic waste from oceans, beaches, rivers, lakes and the banks of those waterways.

I’m not sure how many people are aware of this, but collecting all this plastic before it actually ends up in the ocean is key, as 70% of rubbish in the ocean actually sinks to the seabed – where we are unlikely to be able to clean it up.

Our B2P concept in general and the Ecoball newcomer are steps in the right direction and allow us to firmly put the spotlight on this problem.

They will also reinforce our positioning as a sustainable writing instruments brand and help us promote our sustainable approach to writing, based on refilling versus landfilling.

ADVERTORIAL PILOT Corporation of Europe

Product development was completed last year and COVID-19 got somewhat in the way of an earlier introduction. That said, we’re delighted to start 2021 in such a positive way.

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SPOTLIGHT

Much more than a

DISTRIBUTOR

UK-based office machines wholesaler JGBM prides itself on its business approach that benefits both resellers and vendors – by Andy Braithwaite

W

www.opi.net

hile much has been written about the challenges facing the business supplies industry due to COVID-19, in September 2020, JGBM reported the most successful month – in terms of both sales and profitability – in its 43-year history. It was an achievement driven by high demand for work-from-home (WFH) products.

This is a segment that the office machines distributor happens to be particularly strong in, with items such as webcams, headsets, consumer printers, shredders and other home office equipment selling like hot cakes.

One of the reasons for JGBM’s strong 2020 was its early sourcing and pre-ordering of products which enabled it to have instant answers to WFH needs. In addition to actually being able to supply products, Managing Director John George also points to the success of a daily WFH e-shot which helped dealers pre-sell items.

“An important factor was that we gave due dates, not just in-stock dates,” he says. “It makes a big difference to let dealers know this, so the pre-orders were very strong.”

George believes the WFH category will be “huge” going forward. “Companies are going to have to get involved with health and safety at home and kit out their staff,” he notes. “At the moment, we’re still in a transitional period, but the landscape has changed and a hybrid workforce – able to work from home and the office – will be the norm.”

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PRODUCT KNOWLEDGE Office machines typically account for between 5-8% of an independent dealer’s sales and JGBM has built a strong reputation in this niche category through one of its key USPs: its product knowledge. The sales team – trained by the manufacturers themselves – answers hundreds

of calls a day from resellers. “Given the fast-paced nature of this niche segment, it’s absolutely essential for dealers to engage with a category expert,” explains George.

“Our team will have the answers and can recommend a particular product, explain what’s on promotion that day, or advise dealers on what follow-up questions to ask the customer. This is a real differentiator for us.”

From left: John and Mike George

DIGITAL SOLUTIONS SPECIALIST To compete in the evolving workplace environment, independent resellers have to have robust online capabilities, another area where JGBM excels.

Indeed, it views itself very much as a digital media

KEY HIRE FOR 2021

JGBM recently appointed Simon Bennett as its new Head of Sales and Marketing. Bennett is a familiar face in the UK office supplies channel, having spent 13 years at envelope manufacturer Bong as Sales and Marketing Director and, prior to that, 14 years at paper distributor Antalis.

Last year, JGBM also introduced the 20/20 Lite Office Tech web shop. Featuring solely the JGBM portfolio, a core selling point of the platform is that its content is fully managed in the cloud by JGBM category experts, and as such requires zero dealer involvement, other than publicising it.

Dealers can link to it from their main website or use it standalone. 20/20 Lite has the backing of all of the UK’s leading dealer groups and integrates with Prima, Xero and more.

SPOTLIGHT JGBM

and e-commerce company, partly as a result of its links with sister organisation 20/20 Digital Media – run by John’s brother, Mike George – which has its own development team.

Each year, the distributor hosts an in-house think tank to identify and analyse market issues, and to develop solutions that resolve these. In 2019, following a survey which involved more than 200 dealers, it became clear that selling traditional OP was vastly different from operating in the fast-paced office machines market.

In brief, the brainstorming concluded that dealer selling prices were much too high which, in part, contributed to them believing they couldn’t compete with online prices. “They can,” asserts [John] George. “It just needs to be understood that pricing can sit above the online price, but not ridiculously so. We can resolve that for dealers.”

In response, JGBM has developed several initiatives. One of these is its ISP ‘Intelligent Street Price’ programme. This combines the distributor’s category knowledge with the price that products should be selling for. George points to a sweet spot in dealer pricing which, taking into account local relationships and service levels, sits slightly higher than online pricing.

Another area JGBM has been working on is to help dealers be more efficient in taking advantage of product promotions. “The industry is often led by monthly promotions, yet these are rarely seen by dealers’ customers,” states George. “The mechanism to deliver them wasn’t there, reaction times were far too slow, and content was poor.”

The result is TechStuff, a monthly cloud e-catalogue that dealers can host on their own websites. The digital publication is written in HTML5, so it works on all modern desktop and mobile devices. It includes JGBM-created content, embedded videos, new product releases and the latest OEM offers, usually uploaded within 24 hours of release. “That speed to market is one of our key USPs,” comments George.

WORKING TOGETHER These solutions form part of the company’s ambition to be “the brains of the dealer”, and also highlight its recently developed consumer-driven brand marketing approach.

“This is a significant new strategy,” asserts George. “Unlike the usual ‘trade’ marketing, it communicates directly to the end user via the dealer, essentially using the dealer as a conduit.

Therefore, our product and marketing expertise can be maximised through the dealer channel.

“We now have over 600 dealers on this platform.

It’s a win not only for the reseller, but also for the brand owners because they traditionally have little control at consumer level via the OP channel.”

Plenty remains to be done, according to George. His priorities for this year include building further on delivering unique consumer-orientated content for brands, alongside the opportunities in the WFH market as well as debunking the notion that selling office machines is the same as selling stationery.

Given the fast-paced nature of this niche segment, it’s absolutely essential for dealers to engage with a category expert JGBM IN A NUTSHELL

January/February 2021

JGBM was founded by John George Snr in 1977, in Plymouth, in the south-west of the UK, as the sole UK distributor for the now defunct Silver Reed typewriter brand. Sons John Jnr and Mike joined the company in 1981 and 1982 respectively. The business added facsimile brands to the portfolio as it began a diversity strategy that has continued to this very day – it now distributes approximately 40 brands throughout the UK. In the 1980s, JGBM leveraged the emergence of the buying groups to build a national OP dealer base. This still represents a significant portion of customers today with hundreds of active monthly accounts. The overall strategy was – and still is – to innovate and be the business products industry’s ‘go-to’ specialist in the office machines category. As such, JGBM stocks more than 4,000 SKUs, typically double that of the offering of a traditional OP wholesaler in this particular niche segment.

With the advent of cloud computing, JGBM has added digital marketing – for brands as well as dealers – e-commerce services and unique content-building to its armoury. It also works closely with sister firm 20/20 Digital Media to help dealers compete more effectively online.

JGBM’s efforts have been recognised in recent years by its peers. In 2016, it was named Wholesaler of the Year at the OPI European Office Products Awards; it has been shortlisted for the same award every year since 2015.

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RESEARCH

From PERK to

PERTINENT

Catapulted a few years ahead of its time due to COVID-19, remote working has gone from ‘nice to have’ to ‘no choice’.

But what will happen post-pandemic?

Michelle Sturman finds out…

W

www.opi.net

hat a difference a year makes. The February 2020 edition of OPI (see Research, page 40) explored the issue of flexible working. At that time, the chief emphasis was on how employees would like to have the option to do just that, but many companies still being reluctant to implement widespread telecommuting as a business strategy.

When researching the subject last year, stories were already circulating regarding a new type of virus in Wuhan, China. Estimates suggest that, by April 2020, over half of the world’s population was in a lockdown of some sort due to the spread of COVID-19. The scramble by firms to get staff up and running remotely as quickly as possible made homeworking imperative within a matter of just a few days or weeks.

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A BIG EXPERIMENT Fast-forward a year, and most companies have still not returned to the office. If they have, the majority of staff are on a flexible schedule. Many commentators on the topic of remote working have nicknamed the mass exodus to homeworking in 2020 as the ‘world’s biggest social experiment’ – and it’s pretty hard to disagree with that sentiment.

But with several vaccines now being rolled out, is that experiment about to be over? Will staff simply return to workplaces full-time and carry on as if nothing’s happened? The jury’s still out.

While the current work-from-home (WFH) experience will represent a temporary measure for some, for others it heralds a fundamental shift in the way they will continue to work.

Pre-COVID, managers consistently cited a lack of trust and perceived lower productivity levels as reasons for the reluctance of widespread flexible working policies. After months of WFH, these concerns seem to have mostly dissipated, with employees generally reporting higher productivity.

In the Boston Consulting Group (BCG) COVID-19 Employee Sentiment Survey, 12,000 professionals employed before and during the pandemic in the US, Germany and India were questioned. During the first few months of lockdown, three-quarters of respondents said they maintained or improved output on individual tasks. The figure was lower for collaborative tasks (51%), however.

Research by McKinsey corroborates these results, with 69% of people claiming they were ‘more’ or ‘as productive’ when working from home.

The possession of correct and adequate working equipment played a vital part as a driver of efficiency. Those BCG respondents who were satisfied with their tools (videoconferencing, virtual whiteboards, etc) were almost twice as likely to have maintained or improved their productivity on collaborative tasks.

The Rise of the Hybrid Workplace study by Dimensional Research and Cisco from October 2020 also revealed the critical function of technology. The data suggests that tech solutions will continue to be a key WFH enabler going forward. For example, just 2% of those surveyed expected all participants to be physically present at future work sessions.

Most at-home meeting attendees reported using a laptop for both audio (42%) and video (77%), while 23% utilised a headset and 28% a USB web camera. To improve online get-togethers, a high-quality headset topped the list of must-haves, followed by a digital meeting assistant to aid with taking notes, etc, and digital whiteboard technology.

NOT ALL GOOD NEWS For many, the stress of WFH, particularly in lockdown conditions, exacerbated or created negative feelings due to social isolation and alienation. This has been especially true for those who would typically work on a collaborative basis.

Hybrid Working RESEARCH www.opi.net 48

For others, WFH conditions might not have been optimal – parents with children in the home or the younger generation working in a cramped space in shared accommodation, for example.

One of the biggest complaints has been the lack of face-to-face contact with colleagues.

Videoconferencing and other digital technology cannot replace physical and social interaction and ‘water-cooler’ moments for many employees. Many have also cited the added strain of ‘Zoom-fatigue’.

Until 2020, the workplace was an enticement to attract the best talent with ‘cool’ workspaces, hotdesking, kitted out breakrooms, collaborative meeting pods, etc. Gensler’s US Work from Home Survey 2020, carried out in April-May 2020, reported that just one in ten office staff worked remotely on a regular basis pre-COVID. Following their homeworking experience, only 12% wanted to WFH five days a week.

Across the pond, the company’s 2020 UK Workplace Survey conducted later, in July-August, noted a similar response – 67% of respondents would prefer a hybrid working arrangement, with still just 12% wanting to WFH full time.

Among US respondents, collaborative work and social purposes are the main draws of the office, with over half (54%) citing the most important reasons being scheduled meetings with colleagues, socialising with the team, and impromptu face-to-face interaction.

However, they expect considerable changes to be made to the workplace before they are comfortable returning. For 55% of respondents, a firmer policy against coming in when sick was the top change they would like to see, followed by more opportunities to work from home (52%) and increased office cleaning (50%).

Dimensional Research equally found that almost every employee is concerned about cleanliness and hygiene protocols. 64% would not want to touch shared devices; 62% expressed concerns about using the lift, while 61% would prefer their own desk. The good news is that 99% of participating companies said they expect sweeping changes to be made to the workplace as a result of coronavirus.

CREATING A HYBRID MODEL People want to return to the office, but with the option to WFH if they desire. According to OWL Labs’ 4th Annual State of Remote Work report, 77% of full-time employees in the US stated that being able to telecommute after the pandemic would make them happier.

Additionally, one in two people said they wouldn’t return to a job that doesn’t offer remote work,

although 83% believed their employer will support flexible working.

The Adecco Group surveyed 8,000 office-based workers during the pandemic across eight countries – Australia, Japan, Spain, the UK, Italy, the US, France and Germany. Here too, the broad consensus was that staff would prefer a balance between the traditional workplace environment and WFH to accommodate their personal circumstances.

Consequently, 74% said telecommuting was the best way forward. However, employees anticipate business owners to force them to spend over two-thirds of their time in the office, although they would ideally like to be there only half the time.

Telecommuting is now undeniably established as a viable working practice The Workplace of the Future survey from BCG revealed that most organisations believe their future workforce will be more remote than ever before.

Companies expect around 40% of employees to utilise a remote working framework, and 37% of businesses forecast that over 25% of staff will use a model that combines remote and on-site work.

The majority of research conducted during the pandemic suggest a high uptake by firms and employees alike of some kind of hybrid setup.

BCG suggests three types of models: 1. Alternating on-site: Employees alternate days or weeks on-site for collaboration within and/or across functions.

2. On-site on-demand: Staff go into the office only on designated days for collaboration.

3. Connected remote: Employees reside within three hours of the office to enable once-a-month attendance for affiliation or other purposes.

TIME TO REINVENT Dimensional Research data suggests that over half (58%) of staff will work more than eight days a month from home post-COVID. 77% of businesses are looking to increase remote working arrangements, and 53% expect to shrink office sizes. One stand-out statistic is that only 9% of employees predict they will return to the workplace on a full-time basis.

There’s no doubt the enforced WFH situation has resolved many reservations business leaders may have had pre-COVID on flexible working solutions.

Telecommuting is now undeniably established as a viable working practice and is likely to have a major impact on the office of the future.

EVENT

A virtual SUCCESS

OPI’s first-ever online event attracted almost 250 industry executives over two days in November

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OPI EUROPEAN FORUM ONLINE REVIEW

ith the face-to-face events calendar in 2020 decimated by the COVID-19 pandemic, OPI took on the challenge of shifting its annual European Forum to the web in mid-November.

While virtual conferences cannot replace the human interaction of in-person events, they do allow wider participation from a global audience and the forum was no exception: over the two days, almost 250 industry executives spanning 20 time zones took part.

The conference – held from 17-18 November – served as a platform for industry leaders to debate the future of the business products sector. With the tagline ‘Winning in the Post-Pandemic Business Supplies Industry’, it covered a range of essential topics to ensure executives can maximise their chances of success as and when the world emerges again from the impact of COVID-19.

The focus was very much on sharing knowledge, ideas and views. As such – and to

minimise ‘Zoom fatigue’ – the event incorporated a lot of interactive sessions, with just a single keynote address on the second morning.

OPI CEO Steve Hilleard kicked off proceedings on the first day with a short introductory address in which he highlighted some of the current challenges and opportunities in the business supplies industry. He then went straight into seven back-to-back quick-fire interviews with senior executives from a cross section of the European market. They shared their experiences of the past nine months and how they viewed their specific channels going forward.

There followed a panel discussion on ‘The Future of the Business Supplies Industry’ hosted by Simon Drakeford, CEO of EO Group and Chairman of the UK’s BOSS Federation. Some of the core points that came out of this session included: our industry has done a terrible job in promoting who we are and what we can do; focus on what you are good at and don’t be overly complex; forge

www.opi.net

WHAT THE DELEGATES SAID

50

“Given the current worldwide situation with the pandemic, it would have been very easy to postpone or cancel the event.

It was a brave move to hold a virtual conference, but one that clearly paid off. It was extremely well organised, well attended, informative and engaging. Having the opportunity to choose which breakout sessions to go to was a great idea as it catered for individual preferences and interests.”

Steve Carter, Managing Director, Advantia Business Solutions

“OPI delivered an excellent event with a great array of speakers from across Europe, all with the common goal of our channels surviving and thriving. The openness, honesty and transparency of all involved was refreshing and demonstrated that, however the challenges we all face manifest themselves, we have an industry that is prepared to come together for the benefit of all.”

Nigel Busby, Director, InControl Marketing Group

“The OPI European Forum Online was an excellent way to get an in-depth, informed bird’s eye view of the challenges and issues facing the industry, with practical observations and takeaways to help successfully navigate these challenging times.”

Patricia Hudson, Head of Projects, Solcrown Business Supplies “No other events in the industry attract the breadth or seniority of speakers and delegates that OPI’s do, with all sectors represented by leaders from across the globe. In 2020, the OPI team pivoted to a virtual forum, and while it was a shame to lose the time at the bar and meals together, the business experience was as powerful as ever.”

David Langdown, CMO, Focus7

EVENT European Forum Online

The work-from-home trend presents a tremendous opportunity to reach more customers than ever before tactical partnerships when you need immediate capabilities; sales teams going forward will be smaller but more efficient and productive.

The afternoon agenda began with delegates selecting one of eight roundtables to participate in. Topics included strategies for growth in the safety and cleaning categories, how to become a ‘modern’ reseller, succeeding on eBay, and the post-COVID workplace.

Day 1 concluded with a Brexit panel moderated

by Westcoast Managing Director Alex Tatham (for a post-deal Brexit update, see Opinion, page 28).

DECODE AND RECODE The next morning, after a warm-up networking session, it was the turn of author and business consultant Matthijs Rosman to deliver a fascinating and thought-provoking presentation on disruption,

“I never thought a year ago that I would be able to sit in my living room and have a very good discussion with colleagues from all over the world on the future of sales teams. Thanks to the OPI team for bringing us together again.”

Georg Bettin, Managing Director, Acme United Europe

“Being from South Africa, it is just not affordable or feasible for us from both a cost and time point of view to attend a physical event every year. This virtual conference has allowed us to participate in the international office products community, learning about and understanding trends which we have a duty to communicate back to and guide our dealer group on for the road ahead and the changes facing our industry.

“It is imperative that we be guided by global trends to ensure the survival of our industry and reputable brands, as opposed to container dumping, which tends to take place in emerging countries and destroys both those industries and brands.”

Craig Noyle, CEO, Inovocom

January/February 2021

“In difficult conditions that have affected opportunity and networking, this event proved an invaluable tool to help regenerate interest and profile. The networking opportunity was more effective than I had anticipated and the programme content interesting, valuable and just about right in timing.

“I’m grateful and inspired to push on and seek a new role in an industry I’d fallen out of love with a little. Time for reflection, purpose, drive and determination to get back, brought about by this successful, enjoyable and informative event.”

Steve Harrop, Non-executive Director, HB Associates

advising delegates to “decode and recode” their businesses in times of great upheaval.

He gave eight indicators of when an industry might be ripe for disruption. Judging by some of the comments in the online chat feature, many of these resonated with the audience, including: commoditisation of products or industries; underutilised assets; lack of transparency; low or no added value; ‘platformisation’; and serious user pain points.

Expanding on some possible courses of action during one of the roundtable sessions that followed, Rosman said the work-from-home (WFH) trend presents a tremendous opportunity to reach more customers than ever before.

One of the participants – from the vendor channel – lamented that, so far, there hasn’t been enough collaboration between different channel stakeholders to really take advantage of WFH and the move to a hybrid workplace.

Indeed, the idea of partnerships, making tactical choices about who to work with – even if it’s just a short-term solution to an immediate need – was a theme that cropped up a number of times during the two-day event. ‘Adversity makes for strange bedfellows’ could well be a saying we use a lot in 2021.

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5 MINUTES WITH...

Michael Müller

CAREER Q&A Describe your current job.

I’m Managing Director of technology provider ALSO International as well as SVP Printing of ALSO Group.

What’s your life philosophy?

Treat people with respect and be polite.

What makes you happy?

Everybody in my family accomplishing their goals and seeing my employees being recognised for the fantastic work they do.

What do you do in your spare time?

Play golf and enjoy family time.

What is the hardest thing you’ve ever had to do?

I had cancer at the age of 17. Back then, cancer treatments weren’t as sophisticated as they are now; the chance of survival was less than 30%.

That was my only goal at the time – to survive.

If you could have the answer to any question, what would you ask?

Will my family always be healthy?

Michael Müller, ALSO International/ALSO Group

What is humankind’s greatest invention?

Writing. It has allowed us to store information on a scale never seen before.

If you could change one thing about yourself, what would it be?

Be more patient.

Your worst ever job?

My first job after I left university. I worked as a process engineer and had to redesign software testing procedures.

After six months, I had modified the procedures in a way that my job was done after two hours of work a day. There were no other jobs for me to do, so I had six hours of doing nothing before I could go home. I did that for just one more month before I quit.

If you weren’t doing your present job, what would you like to be doing instead?

I would really enjoy being a promoter/ manager of professional golf players.

What’s your guilty pleasure?

Buying golf clubs.

Your childhood ambitions?

Be a pilot.

Your favourite gadget?

My GCQuad Launch Monitor.

What would you cook for a dinner party?

Italian food with assorted starters, then home-made pasta and beef from the barbecue, followed by a strawberry dessert.

Favourite time of the year?

Summer – when you can be outside, play golf, go swimming and have a barbecue.

Best moment in your career so far?

We went through a reorganisation in a previous job. My manager had left and the new one was still in his old role in Asia and hadn’t started yet.

The president of my business unit turned to me and said: “Michael, you are in charge now.

Manage it for the next three months.”

www.opi.net

What do you like best about the OP industry?

You meet a lot of fantastic people from all over the world.

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What personal item do you always have on your desk?

A picture of my family.

FINAL WORD

Cautiously OPTIMISTIC

A

ttending the OPI European Forum Online last November (see also Event, page 50), it was lovely to see all the familiar faces and also so many new ones. Usually, we’d be gathering somewhere in Europe and enjoying the human interaction, spontaneous conversation and inevitable ‘putting the industry to rights’ in the bar late into the night.

But ‘normal’ has gone out of the window for now, of course. This time round, we gathered digitally to hear from industry players, vendors and associated experts. Over the two-day conference, a number of themes appeared to be emerging in the numerous panel discussion and roundtables:

• How the sector labels itself can be a problem and – at times – constrain expansion.

• The swift shift to e-commerce established a winners/losers environment for the industry.

• The criticality of the supply chain will determine success in the first quarter of 2021 as vendors continue to catch up with production gaps caused by COVID restrictions in Asia.

It was hugely interesting to hear the multiple perspectives from different resellers in their various geographies share their experiences of much of 2020. Few were identical: some had to deal with the positive problem of rapid growth through quick expansion into parallel sectors such as PPE, while others handled the opposite challenge of demand drying up but still covering overheads. A difficult juxtaposition for the industry to handle.

As Warren Buffet once said: “It’s only when the tide goes out that you see who has been swimming naked.” Difficult times often highlight those that have underinvested or been slow to see opportunity.

www.opi.net

FIVE STEPS TO SUCCESS As part of the summing-up session at the end of the conference, five things came to mind:

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1. If you want to be a future industry ‘blockbuster’, then learn from the Blockbuster video experience. Continually keep your eye on higher level trends and update your business model and proposition accordingly.

Maintain a productive paranoia!

2. TX is the new buzzword. TX stands for ‘Total Customer Experience’. I use an acronym called RACE to help focus my thoughts in this context.

Relevancy: am I associated with this category? Have I established permission to play?

Availability: in a just-in-time world, am I positioned to ship it today and get it there tomorrow?

Convenience: do I have the right payment platforms, short clicks to checkout, ease of customer experience on a digital platform?

Are customers able to control their final mile delivery options?

Expectation: am I available on social media for support, sustainability credentials, packaging, customer experiences and journeys? How do I compare to the big global platforms?

Phil Jones MBE, Managing Director, Brother UK

If you want to be a future industry ‘blockbuster’, then learn from the Blockbuster video experience 3. The organisation of the future will be 5D. It’s a good opportunity to evaluate all aspects of the sales and fulfilment cycle. 5D means: De-layered: fewer layers of decision-makers.

Digital: digital systems will dominate.

Distributed: less focused on the centre for decision-making.

Diverse: less geographically reliant.

Dynamic: faster and more fluid.

4. The genius of the ‘and’. Author Jim Collins cited this in his book Built to Last which detailed the characteristics of leaders who lead businesses that outlast their competitors. He argued that “the best leaders are really good at holding two seemingly opposite things in mind at the same time”. Examples of this are ‘exploiting and exploring’ or ‘efficient and innovative’. A reminder to us all that we must always have our thoughts not just on the present, but also on the future.

5. AaaS (Anything as a Service). With tens of millions of people now fully adjusted to working from home, it’s clear that more autonomy may be granted in purchasing for work but within the home. Given that most of the things we have in our lives have moved to the utility subscription service, almost anything will be up for grabs which may today be supplied transactionally.

Plenty to think about. Yet among all this, there was an underlying air of positivity at this virtual event. Now is the time to demonstrate new value, the power of localised service and personal relationships. See you out there.

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