A new Penfold Research report highlights significant shifts in the New Zealand office supplies market.

 

The NZ$2.2 billion New Zealand office supplies market is now dominated by non-core categories as the sector moves to a broader ‘work supplies’ focus.

 

While the report – Office & Work Supplies in New Zealand, 2019-2021 – shows that the market is ‘flat’, it states that dealers are well-placed to achieve strong future growth in key non-core categories.

 

Penfold Research director Andrew Penfold said declines in traditional products are driving higher than normal rates of restructuring and consolidation amongst operators. 

 

“Despite this and the major market reformulation underway, New Zealand benefits from a more comfortable competitive environment than in larger and less remote countries. In this sense players face a lower risk of business damage as they adjust/re-position to the new, broader and more fragmented market,” he said.

 

The report reveals that OfficeMax and Warehouse Stationery have close to triple the market share of their nearest competitors and the New Zealand system appears to favour large incumbents. 

 

“Despite this, we can’t help observing this scale polarity is an opportunity for one or more less sizable operators to move up and fill the competitive void, as a medium-large sized rival. 

 

“While the core sector is supplied by a competent set of established suppliers, the non-core sector is relatively fragmented, and populated by less professional suppliers – signalling an opportunity for OWS operators,” Penfold said. 

 

In terms of customer satisfaction ratings (by business purchasers), the top three dealers/retailers in the survey were; Net Xpress Procurement (NXP), Eeny Meeny and Office Products Depot (OPD). 

 

“These results point to high and even superior levels of performance by smaller rivals of the two market leaders. Even so, both OfficeMax and Warehouse Stationery also performed relatively well amongst business customers, falling just outside the abovementioned top three,” Penfold added.

 

Read the full report summary here -  http://www.penfoldresearch.com.au/wp-content/uploads/2020/03/Office-Work...

 

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. 

 

Andrew Penfold 

Telephone: +61 (0)419 980 971 

Email: [email protected] 

www.penfoldresearch.com.au