New Penfold Research report highlights impact and opportunities.

 

COVID-19 has reset the Australian stationery and office supplies sector to such an extent that it has “upended” traditional market segments and business models.

 

The ‘new world’ of office products is exposed in Penfold Research’s latest industry survey (Office & Work Supplies in Australia, 2020-2022), which outlines the impact and opportunities created by the pandemic.

 

According to Penfold Research director Andrew Penfold, the impact of COVID-19 spans virtually all market dimensions. 

 

“It has transferred a significant share of demand from large spending centralised businesses and institutions to decentralised small home-based consumers,” Penfold told Office Products News.

 

“The emergence of work-from-home (WFH) as a major new and enduring segment is the most significant change,” he said.

 

Other impacts include, more individualised behaviour and discretionary spending, a heightened focus on workplace hygiene/health and safety, plus greater use of large format retailers, technology specialists and online marketplaces. 

 

Penfold said the best growth categories in 2020 have been cleaning, hygiene and janitorial, workwear and safety, office furniture, art and craft and packaging.

 

By contrast, depopulation of central offices and the associated shift to screen-based remote working, has reduced demand for multiple paper-related categories.

 

The worst growth has been in paper, filing, presentation and general office and labels and mailroom. 

 

Despite the challenges, Penfold said there are some significant and substantial opportunities for dealers and suppliers: 

By Penfold’s assessment OWS dealers/retailers have the right competencies and are well-positioned to extend into adjacent categories – as well as channels and segments. 

 

For example, ongoing higher standards of workplace hygiene and safety point to robust growth opportunities in ‘cleaning/hygiene/janitorial’ and ‘workwear & safety equipment.’ There are multiple other attractive adjacencies beyond these.

This opportunity spans multiple sub-areas, and virtually all operators have an element of appeal in what is a diverse, individualised and dispersed mass segment. 

 

Market size and growth 

 

Penfold estimates the Australian office and work supplies (OWS) market is valued at $12.4 billion in 2020. 

 

Total market growth has been better than expected, at -1.2% (2020) although this disguises substantial volatility across different categories, sectors and segments. 

 

The core (traditional) sector has fared worse than average, registering -6.7% growth in 2020 - in contrast to relatively healthy non-core growth of +3.8%. 

 

About the research 

The report entitled “Office & Work Supplies in Australia, 2020-2022” is based on a survey program of over 1,500 interviews, with a combination of business purchasers (including WFH), households & students – as well as office/work supplies dealers and retailers. The report is available by subscription and an outline can be requested or downloaded on Penfold Research’s website www.penfoldresearch.com.au

 

Penfold Research 

Penfold Research, based in Australia, provides operators in the office, education and work supplies sectors with information to assist with planning, decision-making and strategy development. Penfold Research is headed by Andrew

 

Penfold who has been a leading industry researcher since 1999 and before that worked in marketing for a major office supplies retailer. 

 

Contact Andrew Penfold - Telephone: +61 (0)419 980 971 or Email: [email protected]

 

Image credit: Officeworks