Tag Archives: Developments

Market Analysis

Trends And Developments in The Office Products Market

In Australia, the office products market is a profitable industry where companies compete for market share and customers. These companies retail or distribute products in each market segment of the industry, such as: writing instruments, paper and stationery products, computer accessories, filing and storage products, presentation products, general office supplies and office machines. Some companies have expanded their market presence to other business operations such as printing, canteen supplies, packaging products and other office services.

The office products market has a competitive landscape as demand is closely tied to the level of business activity.

However, the office products market in recent years has suffered the effects of the economic downturn. New trends and developments have helped shape the industry as companies attempt to recover their losses and grow their businesses.

Inventory Efficiency vs. Service Quality

Large distributors with sophisticated computerised inventory and order systems have been able to operate more efficiently than small and mid-sized competitors, creating a competitive advantage over their smaller rivals. However, many small distributors can still compete successfully by providing superior customer service and distributing specialty products.

The Power of E-commerce

The efficiency and convenience of ordering office products and supplies online from dealers with elaborate distribution networks threatens smaller less digitally oriented operators. Suppliers that do not invest heavily in the latest computer technologies will be at a large disadvantage. Many of the large retail chains are currently growing their internet and catalogue sales while office supply distributors are increasing their online procurement activity.

Creative Promotions

Many companies undertake creative promotions by capitalising on peak months such as the “Back to School” season that occurs in January and February. “Back to School” related promotions help the office products market generate a significant boost that compensates for the low demand months through the year.

“Hi-Low” Pricing Strategies

Most large office operators like Corporate Express, Officeworks and others use “hi-low” pricing strategies to sell higher profit margin products wherein they charge low prices for conspicuous high volume commodity items like office paper. Office product suppliers can earn higher profit margins on the high-priced items because companies are willing to pay more for the convenience of purchasing all supplies from one supplier.

Purchasing Associations

While large office supply chains receive very competitive pricing from manufacturers, small retailers and other office products distributors have formed purchasing associations to negotiate similar volume based pricing. Purchasing associations have become more powerful as they join other buying groups; this has resulted in a few major associations with substantial buying power.

Market Expansion

These days, many companies have ventured into other market segments such as printing, promotional, janitorial and office furniture.

In this highly competitive and volatile office products market, the best run companies have leveraged these trends in an effort to gain more customers, achieve sales targets and expand market presence.

Market Analysis

New Developments in The Fight Against The Grey Market

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Grey goods are typically those products that have been imported or distributed without the knowledge of the legitimate manufacturer or authorized distributor. These products are typically sold at lower prices compared to their MAP agreements. Such grey products can easily erode market value and create havoc for the legitimate distribution channel. It is essentially the trading practice of a product that uses distribution channels which may or may not be legal but are still unauthorized by the legitimate manufacturer of the product.

To counter attack the gray market phenomenon that has been eating into the revenue of enterprises, there are several new developments in brand protection solutions available to the enterprises. Optimized brand protection solutions are available that can help enterprises tackle grey markets intelligently by first identifying risks, then prioritizing the risks and then actually mapping the effects of the brand abuse of the grey products to the OEM agreement. These solutions can help identify and track the actual source of the seller and can even offer visibility into the listings on the sites that are conducting this illegal activity.

Most of the current brand monitoring solutions come equipped with an intuitive user interface that has the ability to check and track case histories. Additionally these solutions can offer evidence based on detailed analysis and can therefore establish better connections between suspect distributors and their product listings. Such solutions can be used as a defense against the grey market sales simply by their ability to find new targets and networks that sell grey market goods. Brand violations often occur with grey market activities, and brand protection solutions can help track such violations and pinpoint the different areas where the product has been misdirected.

Grey market products can have a negative impact on customers who are expecting the original manufacturer’s brand quality as well as their accompanying warranties. Often these grey products are “end of life” products that may have been thrown away because newer models have replaced them. Opting for an effective brand protection solution is one way for enterprises to ensure security against such grey market activity. Optimized brand protection solutions can safeguard enterprises,and protect product distribution models and company revenue.