Research

STANDING at the CROSSROADS

STATE OF THE INDUSTRY PREVIEW

Were the events of 2020 a definitive turning point for the global office products industry? Will 2021 continue the upheaval seen in the market in the last 12 months or will it settle back into something resembling what it used to be?

At this difficult time – and perhaps more so than ever – senior business supplies executives all over the world have no choice but to re-evaluate and redefine their strategies to successfully navigate the next few years. And they have plenty more questions:

• Are traditional ‘core’ office supplies now just legacy products? • Will the industry continue to see exponential growth in sales of janitorial and PPE items? • Will demand for catering supplies through our channels begin to revive? • Will demand for office furniture return to pre-COVID levels? • Will the online players – and in particular

Amazon – lose share as lockdown retreats? • Will managed print service (MPS) arrangements reclaim the share lost to transactional sales of printer consumables?

LEARNING FROM LEADERS

All these questions demand reliable answers from trusted sources. The State of the Industry 2020-2021 is the eighth edition of the annual research study conducted by Martin Wilde Associates (MWA) and OPI. It provides those answers, and many more, by asking some of the best minds in the industry – the senior executives running the major OP companies around the world.

Based on in-depth and online interviews with these executives in Australia, Benelux, Canada, France, Germany, the UK and the USA, the report this year will focus particularly on the crucial KPIs that the COVID-19 crisis has been affecting.

What, for example, were respondents’ overall revenue and margin trends in 2020 and 2021 and which product categories make up the bulk of those sales? What was/is the value of the core OP market in 2020 and 2021? And what role did Amazon play in terms of its share of the core OP market in each country in 2020? Will survey respondents fight back this year against any share takings?

Indeed, how important was online shopping in 2020 overall and will this trajectory continue? To what extent did the pandemic affect average order values? As regards the logistics side of things, what share of resellers’ deliveries were to home addresses in 2020 – what will this share likely be in 2021?

There’s no question about the many adaptations companies have had to make to their businesses to weather the storm in 2020. The interview responses will provide an insight into those changes as well as a plan of recovery for this year.

Our industry is undoubtedly standing at a crossroads in 2021. More than ever, your future business strategy needs reliable, informed input from peers and competitors – the State of the Industry 2020-2021 report provides exactly that.

There’s no question about the many adaptations companies have had to make to their businesses to weather the storm in 2020

To order your copy, visit www.opi.net/ SOTI2021. The report is available for £899 (approx. $1,250) and will be published in May 2021

OPI GLOBAL FORUM ONLINE PREVIEW ADDRESSING the PRESSING issues

Little did we know when COVID-19 first hit the world over a year ago that in-person events, certainly anything of a global, border-transcending nature, would be struck off the agenda not only in 2020, but also well into this year. At a time when, quite possibly, there has never been a more urgent need to get together and talk. As such, and rather than postponing the event to a pandemic-friendlier period, OPI has decided to hold its ninth Global Forum at the planned time but virtually.

Taking place from 5-6 May 2021, the conference will draw on the rich experience gained from the European Forum Online in November 2020 (see Event, OPI January/ February 2021, page 51). The premise then was clear – and unanimously applauded by delegates: bring in top-level speakers from within and outside the business supplies industry, cover today’s pressing issues and, as much as possible, do both in a highly interactive way.

INTERACTIVE AND INTIMATE

A core topic of discussion for everyone right now – attendees themselves or their customers – is the changing workplace. What will it look like and what does it mean for the products and services that need to be provided, in the office as well as the home workspace?

This is how the event will kick off on 5 May. Andrew Mawson of workplace management consultancy Advanced Workplace Associates will shed some light, not hiding behind a PowerPoint presentation, but engaging delegates in a virtual Q&A session which will provide real answers to real questions.

Delving deeper still, this will be followed by a panel discussion featuring a number of high-profile executives from within and outside our sector, including Innovative Office Solutions’ Jennifer Smith and Brother UK’s Phil Jones.

Responding to requests for small breakout sessions, the rest of the day will be spent in various tracks of quick-fire interviews and intimate roundtables. Topics covered comprise industry best-practice success stories, specific vendor themes, B2B e-commerce and marketplace realities, and global shipping and logistics challenges, to name but a few.

To allow delegates to attend more than just one of the tracks and roundtables, these will be repeated the next day. Before that, however, on day two, John Ghiorso is going to impart his vast knowledge learnt at Orca Pacific, the full-service Amazon agency he created to bring cutting-edge strategies and managed services to industry-leading global brands.

While this is another interactive Q&A, it is also the session to sit back, listen, take notes and be amazed by what Amazon strategies can be implemented to achieve sustainable and profitable growth.

BROADER REACH

Typically, while always having a solid international contingent at the Global Forum, the majority of delegates tend to come from North America, the usual location being Chicago. With no considerable financial or time constraints (other than potentially having to attend very early or late depending on where you are), the online nature will make for an excellent geographic spread of attendees, but also for a balanced channel blend where vendors, wholesalers and resellers of varying sizes can learn, mix and mingle.

The last of these – networking – is one of the core components and highlights of OPI’s physical events. Though this can never be truly replicated virtually, delegates will have plenty of opportunities to chat, one-to-one or in small groups, to their peers, exchange ideas and prepare for the – hopefully COVID-free – future.

OPI CEO Steve Hilleard says: “Virtual or not, no other event brings together such a comprehensive audience of industry leaders. We’ve been working on a programme that is on point, provides plenty of practical ideas, and allows delegates to make informed, strategic decisions to ensure their businesses succeed going forward. We’ll do that in two half days and without attendees suffering from severe Zoom fatigue.”

We’ve been working on a programme that is on point, provides plenty of practical ideas and allows delegates to make informed, strategic decisions

For more information about the OPI Global Forum Online and to register, please visit opi.net/GF2021

EUROPEAN OFFICE PRODUCTS AWARDS REVIEW ZOOMING in… The CLASS of 2021

The words resilience, resourcefulness and reinvention took on a whole new meaning this year, as the 2021 EOPA winners were crowned

Celebrating the winners of the European

Office Products Awards (EOPA)

virtually was certainly not what the OPI team had in mind this year, especially given that 2021 marks the 20th anniversary of the EOPA. However, the reality of this didn’t take anything away from the award winners and the richly-deserved trophies they received in a variety of Zoom presentations with the OPI team and the EOPA judges in early March.

Quite the opposite. To be shortlisted alone in this pandemic-dominated year is an achievement and testament to resilience, ingenuity and a lot of hard work. To win is exceptional.

Unsurprisingly, the success of the winners was closely linked to how they responded to the challenges of COVID-19. There were only six this year, as the categories had been severely trimmed to really highlight the outstanding products, companies and individuals of 2020.

Agility and unprecedented pace in doing what had to be done has been a common denominator for all of them – be that in the area of product innovation and availability, online excellence or continued investment in a difficult climate.

As OPI CEO Steve Hilleard said: “2020 has been an incredibly challenging year for so many. As such, the team at OPI was even more humbled by the enthusiasm shown yet again for the EOPA. I would like to sincerely thank the many companies for entering or nominating candidates, the judges for taking the time out of their no doubt busy schedules to evaluate those candidates and the winners for being part of our first-ever virtual awards ceremony.

“The EOPA are always a great reflection of an industry that refuses to be defeated by challenges – 2020 perhaps proved that more than any other year. I cannot wait to raise, when we’re allowed again, a glass in person to every single EOPA winner – to our whole resilient and fantastic industry in fact.”

The EOPA are always a great reflection of an industry that refuses to be defeated by challenges

BUSINESS PRODUCT OF THE YEAR

Winner: 3M – Scotch Flex & Seal Shipping Roll

In this category, the judges, among other things, were looking for innovation, quality and benefits for the consumer and the reseller. As expected, many of the entries for this award were COVID-related solutions, which have helped to not only save lives, but commercially contributed to manufacturers and resellers weathering the storm.

The winning product, 3M’s Scotch Flex & Seal Shipping Roll, was not actually born out of COVID, but definitely tapped into the opportunity that the pandemic brought in terms of an unprecedented surge in online orders and deliveries. It’s also extremely relevant bearing in mind the very high number of small parcels currently being sent directly to home addresses.

This packaging solution is simple: it can be used for any sized or shaped object without any wastage of packaging. Its three-layer construction provides a durable outer layer that is water and tear-resistant, a cushioning middle layer, and an inner layer which sticks securely to itself – not the item. There’s no need for tape, padding material or cardboard boxes – just cut, fold and press, label and send.

The EOPA judges felt that the commercial success of the Scotch Flex & Seal Shipping roll is a little untested as yet, as the product only launched in several European markets in October 2020. But early figures look hugely promising and the consensus was that this is a highly innovative product which will see phenomenal success and be around for many years – COVID or not.

Aidan McDonough Gareth Farrell Debbie Nice

Steve Hilleard Janet Bell

From left: John George, Carol Clarke & Mike George

WHOLESALER OF THE YEAR

Winner: JGBM

The shortlist for this award again featured some well-known names from across the European business supplies industry. Wholesalers have undeniably had to move out of their comfort zone over the past year, explore new sourcing avenues and provide much-needed assurance to their reseller partners that were scrambling for products they had never sold before or, if they did, in minuscule quantities.

This year’s winner, UK-based JGBM, is a very familiar player on the EOPA circuit, having won the same award back in 2016 and being shortlisted every year since (and also in 2015). 2020 was the time when this comparatively small and somewhat niche operator – its core remit is office machines – came into its own again.

Highly entrepreneurial in its approach, hugely adaptable to surges in demand and reassuringly knowledgeable in times of heightened customer needs and demands – that sums up JGBM in a nutshell.

The work-from-home reality of the past 12 months – a curse for some, a blessing for others – played beautifully into JGBM’s product portfolio and in-depth knowledge while its long-honed online expertise helped its dealer partners to successfully compete in a spiralling e-commerce world (for more on JGBM’s initiatives, see Spotlight, OPI January/February 2021, page 44).

VENDOR OF THE YEAR

Winner: Essity

The 2021 Vendor of the Year award goes to a company at the very heart of the COVID-19 pandemic – health and hygiene. It’s certainly true that the cleaning category has never received more attention or been more important than over the past year (see also Final Word, page 54). As such, it’s fair to say the winner – Sweden-based Essity – has had a captive audience.

But while demand in some verticals has been skyrocketing, it’s also true that operators like Essity have had to endure a staggering loss of revenue in others due to the closure of businesses, including entire sectors such as hospitality.

Furthermore, this category has faced intense scrutiny due to heightened standards and legislation, not to mention entirely new product priorities. Essity – its Professional Hygiene division includes the well-known Tork brand – has not been immune from the many challenges but, according to the EOPA judges, has dealt with them admirably: “tremendous job”, “great support” and “good supply and availability” were terms that came up in the heated debates for this popular trophy. Hugely importantly also was communication in this most difficult of years. And here, as all the feedback from resellers and distributors proved, Essity has absolutely excelled.

RESELLER OF THE YEAR

Winner: Printus/OTTO Office

Typically, this award is split into two: Reseller of the Year in the over and under €100 million category. This year, the decision was made to combine them and award just one trophy. And it’s easy to see why. As the EOPA judges said, just surviving in the current climate is impressive; excelling is superlative.

The criteria refer to sales performance, fill rates and delivery reliability. These were incredibly hard to meet at a time when entire product categories fell off a revenue cliff and whole customer demographics ceased to temporarily exist. But other requirements, such as successfully launching new service offerings, developing novel ranges and – never more so than this past year – making quite radical shifts to e-commerce and m-commerce, were certainly met by OTTO Office, part of the Printus stable.

This reseller, which commands huge trust and respect from its industry partners, has done an excellent job at switching its catalogue business to online. Its fast decision-making also enabled it to source and make available online a range of entirely new products, in the cleaning, PPE and home office categories for instance, during a period when everyone was scrambling and demand was soaring.

Highly commended: Amazon

PROFESSIONAL OF THE YEAR

Winner: Dan Fati

Professionalism and enthusiasm for the sector, leadership ability and a direct contribution to the success of their business – these are attributes the EOPA judges were looking for in the winner of the Professional of the Year award. Dan Fati from independent Romanian reseller Dacris displayed all of them in spades.

Making things happen was Fati’s motto over the past year. This endeavour transcended many areas. These included: keeping its workforce of 254 safe, motivated, trained and productive; sourcing, securing, marketing and distributing a wide range of COVID products; and upping its online capabilities – and the resources this required – to make its web store a go-to destination.

Financially speaking, Dacris ended 2020 on a par with 2019, posting revenues of €24 million ($29 million), with coronavirus-related products accounting for 20% of these sales.

Fati co-founded Dacris with two other family members back in 1993. He’s always been a progressive leader, willing to think outside the box and keen to invest both in his business and its staff. 2020 was the year when collaboration with all parts of the supply chain, compassion for his employees and no small amount of composure in the face of considerable adversity really paid off.

INDUSTRY ACHIEVEMENT

Winner: Richard Scharmann

The final EOPA – and this year is no different – always goes to an individual who has had a significant impact on our sector. The judges are looking for someone with excellent leadership skills and outstanding competencies in the channel(s) they operate in as well as involvement in and contribution to the industry as a whole.

This year’s winner – Richard Scharmann, CEO of Austria-based PBS Holding – fulfils all of the above criteria and more. Having spent his entire career at this multichannel organisation that is focused on Central and Eastern Europe, Scharmann has always closely monitored and fostered organic growth while also investing in new opportunities, aware of consolidation trends in Europe’s markets.

The acquisition of Office Depot’s Central Europe operations in late 2019 has been the most sizeable of recent investments, while just in February – after the EOPA judges meeting – PBS Holding added Staples Solutions’ Global Accounts Team to its tally.

Scharmann knows every facet of his company inside out and over the years has earned the respect and trust of industry peers, partners as well as, indeed, competitors. He is also a well-known and much-liked pundit on the international conference circuit, where he often expertly and collaboratively shares his insights and knowledge.

Jonathan Smith

Richard Scharmann

5 MINUTES WITH...

Margee Witt

What’s your life philosophy?

Live in gratitude. I have much to be thankful for.

What makes you happy?

Cooking for and spending time with our five children and three grandchildren.

What do you do in your spare time? I love to bake – it’s very relaxing to me.

Early bird or night owl?

Absolutely early bird. Ask anyone about my 5am emails.

What’s your worst character trait?

Some might say I can be a bit controlling. OK, a lot controlling.

What would you cook for a dinner party?

Anything Italian. Having family over for polenta and Italian sausage, for example.

Favourite time of the year?

Spring – I love the new foliage and flowers popping up.

Best compliment you’ve ever received?

That my daughter looks like me.

Where would you most like to visit?

I would love to go back to Banff in Canada and fly fish again. What an amazing place.

Margee Witt, Blaisdell’s

Christmas bake-off with the Witt family

What’s your most prized possession?

Our dog Olive. She’s at the heart of our family and business.

What’s your guilty pleasure?

Long, leisurely baths.

Who is your biggest inspiration?

My husband.

What skill would you like to master? I wish I could play the piano like a pro.

What irrational fear do you have?

I can’t handle the sight of blood.

What subject should be taught in schools?

They should teach kids the basics of home/ personal finance.

CAREER Q&A

Describe your current job.

CEO and leader of an amazing team of dedicated, hardworking professionals at Blaisdell’s Business Products in Oakland, California.

Your worst-ever job?

My first job at the age of 15 when I was hired by Kmart to be a security guard/bag checker. What were they thinking? I didn’t last long.

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

I’d probably start another business. Maybe a bakery?

Best moment in your career?

When I recruited my husband Mike to join the company (he’s now COO). We work really well together and share the same passion for the business.

Worst moment?

What we’re experiencing right now and the fallout from the pandemic. It has ravaged our industry on so many levels. It’s gut-wrenching to watch 30+ years of hard work wither away, seeing customers go out of business every week and having to furlough valued employees.

Your favourite office product?

I have a Swingline stapler on my desk that has been with Blaisdell’s for more than 50 years!

FACILITY SUPPLIES & PPE/SAFETY FOCUS The new HYGIENE STANDARD

Washrooms, historically, have not been top of mind, a key priority or a compelling concern for companies. Then came 2020.

Hygiene – and with it, workplace washrooms – has become more important than ever. Staff members and visitors in the age of COVID-19 have a new desire for accessible and reliable hygiene and need to have it at their disposal so they can wash and dry their hands frequently. But are washrooms in companies around the world ready?

Perhaps the most paramount and long-lasting impact of the pandemic is an expectation of universal access to excellent hygiene in lavatories, in terms of how they are designed as well as stocked. I believe this new demand will shape the whole approach to this part of a company’s facilities for years to come.

As the pandemic reaches its one-year milestone, we have seen a fundamental change in mindset – from washrooms providing a basic service to them being a vital component of a healthy workplace. This shift was evident in a recent survey Essity carried out with over 10,000 people about their attitudes towards public toilet facilities:

• 81% of respondents said they expect washrooms to provide a safe hygienic environment to a higher extent than prior to COVID-19. • Three in four people want their employers to conduct extra cleaning rounds. • 47% demand increased hygiene standards in their office washroom. • 15% said a lack of soap or hand towels had prevented them from washing their hands.

HEIGHTENED EXPECTATIONS

With expectations considerably higher than pre-COVID and in order to improve workplace health and safety, office managers need to ensure washrooms are kept reliably well-stocked with all the necessary products.

Using advanced data and digital services can make this an easy process, while also reducing the number of facility checks and restocks staff need to carry out. In addition, they reduce interpersonal exposure in what are typically small room environments.

Connected dispensing systems supply data that identifies the right moments to clean and the right time to restock, not to mention provide reporting and analytics. This, surely, is the future of safe and hygienic washrooms.

SUSTAINABLE HYGIENE

Today’s workforce expects not only a hygienic workplace, it also wants to be reassured all the products in it are sustainably made and handled. We call this sustainable hygiene management and I believe this is the new standard in the modern office.

Whether they are products in washrooms, breakrooms or kitchens, they should all be made sustainably (with recycled content or sustainably sourced fresh fibre). Soap and sanitisers in particular need to have relevant eco labels and safe ingredients. One-at-a-time dispensing is equally important to reduce waste volume where possible and promote environmentally-driven waste recovery.

Research conducted by Essity in the second half of 2020 showed the pandemic has accelerated expectations around sustainability. As such, companies that wish to attract and retain talent and customers will be in sync with society’s expectations when sustainable hygiene management is practised.

The workplace has become a challenging new environment and needs careful navigation. To support companies in their approach and learning, our Tork brand has launched a new ‘Secure the New Hygiene Standard’ web portal which contains information, advice and downloadable posters featuring health tips and hand hygiene reminders that employers can post in their washrooms. At the same time, our series of ‘Safe at Work’ toolkits contain guides and product information customised for a wide range of work environments.

Good hand hygiene is crucial in the fight against COVID-19 and other illnesses. Every company wants its workforce to be and remain healthy. When employers equip their premises with hygienic products in all areas where staff congregate, they show that they care about employee well-being. The office washroom where most hand hygiene takes place is one such area. It’s time it’s given the respect it deserves. Don Lewis, President, Essity Professional Hygiene

When employers equip their premises with hygienic products in all areas where staff congregate, they show that they care about employee well-being

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Laurent Bertrand, Dactyl Buro Office

Essity won the Vendor of the Year award at the 2021 European Office Products Awards (see page 48 for our full review).