European Supplies Distribution Overview January 2006 00000000 Copyright © InfoTrends/CAP Ventures 3rd Floor, Sceptre House 7-9 Castle Street Luton, Beds LU1 3AJ www.capv.com 1 Agenda • Supplies distribution flow chart overview • Channel definitions and Players • Distribution charts by product – Toner cartridges – Inkjet cartridges – Specialty media – Copier Toner • Country differences • Conclusions 00000000 Copyright © InfoTrends/CAPInfoTrends Ventures 97 Libbey3rd Floor, Industrial Sceptre Parkway House Suite7-9 Castle 300 Street Weymouth, Luton, Massachusetts Beds LU1 3AJ 02189 www.capv.com www.capv.com 2 W. Europe – Total Printer Supplies Distribution in 2004-5 Small=S Medium=M st Large= L 1 tier in black OEMs and Aftermarket Players 2nd tier in red Enduser in blue 17% 39% 5% 8% 7% 20% Computer Supplies Hardware Distributors Contract 8% Distributors Stationers Wholesale Stationer & 5% 4% Buying Groups 8% 17% 5% 15% Mail Order Printer Catalogue Superstores Office Service/ Other Retail supplies Dealers dealer 25% 8% 15% 2% 32% 12% On-Line Sales On-Line Sale On-Line Sales On-Line Sales 6% End-users M/L S/MM/L S/M M S/M M/L 00000000 Copyright © InfoTrends/CAPInfoTrends Ventures 97 Libbey3rd Floor, Industrial Sceptre Parkway House Suite7-9 Castle 300 Street Weymouth, Luton, Massachusetts Beds LU1 3AJ 02189 www.capv.com www.capv.com 3 Channel Definitions and Major Pan- European Players (1) • Hardware Distributors – Main distributor for OEM hardware – some with strong sales in the supplies business – Sell via hardware dealers- No direct end-users sales – Struggling and having to change business structure to survive – EG: Ingram Micro, Computer 2000/TechData, Northamber (UK) – Westcoast (UK) buys Orion CSD 2005 • Computer Supplies Distributors (CSD) – Sell EOS mainly to trade channels – Tend to be controlling the high volume supplies market – Some consolidation but still own large part of the market – EG: Despec, UFP, ISA, Spectrum(UK) EOS= Electronic Office Supplies 00000000 Copyright © InfoTrends/CAPInfoTrends Ventures 97 Libbey3rd Floor, Industrial Sceptre Parkway House Suite7-9 Castle 300 Street Weymouth, Luton, Massachusetts Beds LU1 3AJ 02189 www.capv.com www.capv.com 4 Channel Definitions & Players (2) • Wholesale Stationers & Buying Groups – Wholesale channel that buy direct and through EOS distributors – Sell to traditional dealer channels – Cover broad product range- stationery, furniture and EOS – UK has 2 dominant players and one is spreading across Europe – EG Kingfield Heath (UK), Spicers (UK,Ger,Fr,Sp,Ire) • Buying Groups – Buying groups act as a power based collective to support dealers with purchasing power and joint marketing initiatives – But have to form alliances to keep as powerful as the contract stationers BPGI, Eurozerty, Buero actuell, Integra, Office Team, EOSA, InterAction ….. 00000000 Copyright © InfoTrends/CAPInfoTrends Ventures 97 Libbey3rd Floor, Industrial Sceptre Parkway House Suite7-9 Castle 300 Street Weymouth, Luton, Massachusetts Beds LU1 3AJ 02189 www.capv.com www.capv.com 5 Channel Definitions & Players (3) • Mail Order Catalogue – Sell via catalogues – Sell to both business and private end users – Are mainly part of multi-channel organisations – Eg Office Depot with: Viking, JM Bruneau, JPG, Algety Bureau – EG Misco- HCS Global, Staples- Mail Order arm, Inmac/Microwarehouse (Dixons Group) • Contract Stationers – Traditionally sell office products and EOS directly to large sized companies – Now targeting medium and small companies – Lot of consolidation continues – Are also part of multi-channel organisations – EG Lyreco (bought Ahrend 2005), Guilbert (owned by Office Depot), Boise Office Solutions, Corporate Express, Tybring Gjedde (Nor)- aquiring in Ger,Nor 00000000 Copyright © InfoTrends/CAPInfoTrends Ventures 97 Libbey3rd Floor, Industrial Sceptre Parkway House Suite7-9 Castle 300 Street Weymouth, Luton, Massachusetts Beds LU1 3AJ 02189 www.capv.com www.capv.com 6 Channel Definitions & Players (4) • Superstores – Office supplies specialist stores – Face competition from food and other generalist stores – Players become Multi-channel – EG Office Depot, MediaMarkt, Globus Office World, Staples- bought UK Office World in 2004, Office 1= franchise superstore, PC World • Other Retail – PC computer stores / Department stores – Food Retailers, Hypermarkets, Cash & Carry – Growing channels for inkjet supplies – EG: Asda (Walmart), Tesco, Carrefour, , Auchan, Herlitz,,FNAC, Dixons Group, Printus 00000000 Copyright © InfoTrends/CAPInfoTrends Ventures 97 Libbey3rd Floor, Industrial Sceptre Parkway House Suite7-9 Castle 300 Street Weymouth, Luton, Massachusetts Beds LU1 3AJ 02189 www.capv.com www.capv.com 7 Channel Definitions (5) • Traditional Local Dealers – Independent supplies dealers that buy through wholesale stationers and buying groups – Sell to locality – often have a shop front • Hardware Dealers – Local hardware dealers buying through the major hardware distributors • Web Sales – Online arms of multi-channels and OEMs –EgDell • Internet Only Channels – Companies that sell only over the Web – Becoming more important in W-Europe 00000000 Copyright © InfoTrends/CAPInfoTrends Ventures 97 Libbey3rd Floor, Industrial Sceptre Parkway House Suite7-9 Castle 300 Street Weymouth, Luton, Massachusetts Beds LU1 3AJ 02189 www.capv.com www.capv.com 8 Supplies Distribution by Product 00000000 Copyright © InfoTrends/CAPInfoTrends Ventures 97 Libbey3rd Floor, Industrial Sceptre Parkway House Suite7-9 Castle 300 Street Weymouth, Luton, Massachusetts Beds LU1 3AJ 02189 www.capv.com www.capv.com 9 Copier Toner Channel Share Trends W Europe 2003-2008 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 00000000 Stationer/C.S.D* Superstore Copyright © InfoTrends/CAPInfoTrends Ventures Trad local Dealer Copier Dealer OEM Direct Catalog/Mail Order 97 LibbeyIn Industrialterne Parkwayt SSuitepe 300 c Weymouth,ialist Massachusetts 02189 www.capv.com 3 rd Floor, Sceptre House 7-9 Castle Street Luton, Beds LU1 3AJ www.capv.com Printer Dealer VARs & ISOs Other 2003 2004 2007 2008 10 Copier Toner Distribution Trends • UCP revives copier supplies potential – Colour big growth area – Colour toner will represent >30% of copier toner by 2008-9 – Supplies revenues increase again • Total cost of ownership becomes important rather than just clicks • Copier dealer channel looks to take advantage – Support and service are an advantage • OEMs buy up copier dealers to retain dealer loyalty • Copier toner aftermarket dominated by Katun • Stationer channel will try to take share • Printer vendors compete with colour MFPs 00000000 Copyright © InfoTrends/CAPInfoTrends Ventures 97 Libbey3rd Floor, Industrial Sceptre Parkway House Suite7-9 Castle 300 Street Weymouth, Luton, Massachusetts Beds LU1 3AJ 02189 www.capv.com www.capv.com 11 Printer Toner Channel Share Trends W Europe 2003-2008 60% 50% 40% 30% 20% 10% 0% Stationer/C.S.D* 00000000 Superstore Copyright © InfoTrends/CAPInfoTrends Ventures Trad local Dealer Copier Dealer OEM Direct 97 Libbey Industrial Parkway Suite 300 Weymouth, Massachusetts 02189 www.capv.com 3 rd Catalog/Mail Order Floor, Sceptre House 7-9 Castle Street Luton, Beds LU1 3AJ www.capv.com Internet Specialist Printer Dealer 2003 2004 2007 VARs & ISOs 2008 Other 12 Printer Toner Distribution Trends • Colour printer toner demand grows rapidly to 2009 • EOS Supplies distributor and contract stationers remain biggest channel • Printer dealers lose share to supplies companies • More OEMs sell direct – Print plans and TCO contracts – Try to compete with copier channel • Mail order and Internet supplies companies grow share 00000000 Copyright © InfoTrends/CAPInfoTrends Ventures 97 Libbey3rd Floor, Industrial Sceptre Parkway House Suite7-9 Castle 300 Street Weymouth, Luton, Massachusetts Beds LU1 3AJ 02189 www.capv.com www.capv.com 13 Toner Cartridge Channel Share Trends W Europe 2003-2008 60% 50% 40% 30% 20% 10% 0% 00000000 Stationer/C.S.D* Superstore Copyright © InfoTrends/CAPInfoTrends Ventures Trad Local Dealer Copier Type Dealer OEM Direct 97 Libbey Industrial Parkway Suite 300 Weymouth, Massachusetts 02189 www.capv.com 3 rd Floor, SceptreCa Housetal o 7-9g/M Castle Streetail Or Luton,d Bedser LU1 3AJ www.capv.com Internet Specialist Printer Dealer 2003 2004 2007 VARs & ISOs 2008 Other 14 W. Europe – Total (AM/OEM) Printer Toner Cartridge Distribution in 2004/5 Toner Aftermarket = 21% Toner OEM = 79% Aftermarket/OEM Paper Computer Supplies Hardware merchant Distributors Distributors Mail Order Contract Wholesale Catalogue Stationers Stationer & Buying Groups Graphics/ Ptr/Service/ 1% Dealers Superstores computer Trad local supplies 7% Other Retail supplies 39% 6% dealer 23% 9% 9% dealer 6% On-Line Sales On-Line Sale On-Line Sales On-Line Sales End-users 00000000 Copyright © InfoTrends/CAPInfoTrends Ventures 97 Libbey3rd Floor, Industrial Sceptre Parkway House Suite7-9 Castle 300 Street Weymouth, Luton, Massachusetts Beds LU1 3AJ 02189 www.capv.com www.capv.com 15 Toner Cartridge Distribution Trends • Dominance of EOS distributors and their dealers but growth with contract stationers also • Mail order companies and online sales expect to grow most • Internet specialists includes Dell Online sales – which grows as its share grows in Europe • Retail is not so significant in toner cartridges as it is in inkjet • Big distributors/stationers offer own label cartridges – Makes it difficult for third party players to sell their own brands 00000000 Copyright © InfoTrends/CAPInfoTrends Ventures 97 Libbey3rd Floor, Industrial