Paper-based stationery in Denmark The market for paper-based stationery in Denmark has faced many challenges from the growth of digital communication but some niche segments are positive, such as handmade paper products and personalised greetings cards. Market characteristics Consumer market constrained by slow spending. The Danish market for paper-based stationery was valued at € 88 million in 2010, a 1% average annual increase since 2006, representing 1% of EU market value. This compares with the EU as a whole, which registered a 0.7% increase. Danish consumption for this sub-sector was close to the EU average. This performance reflected an upturn in sales of personal stationery, although sales through the office segment were affected by pressure on prices. See the module on promising EU export markets with all trade statistics. Greetings cards are taking a growing share of the paper-based stationery subsegment. There are a number of small local businesses that produce greetings cards and individuals that make cards at home, which pose a threat to DC exporters, but the popularity of greetings cards is growing as Danish consumers are sending more personalised messages. The possibility of success for DC exporters is more likely to depend on the originality of the design rather than the price of the card. The other key factor will be the ability to secure good distribution through the personal segment, probably via one of the leading bookstore chains. Production slowly decreasing. Denmark is a medium-sized EU producer of paper-based stationery, valued at € 173 million, a 1.2% average annual decrease over the review period. Labels, both printed and unprinted were the largest product group, accounting for 80% of all production. Envelope production was valued at € 30 million. The majority of the remainder is for boxes, pouches and compendium sets, as well as some greetings cards Bong – http://www.bong.dk – is a leading producer of envelopes. Dalum Papir – http://www.dalumpapir.dk – also produces envelopes and other paper products. Below average DC share of imports. Total imports of paper-based stationery were valued at € 96 million in 2010, a 0.3% annual average increase since 2006. However, DC imports increased by 6.2% over the period. They accounted for 14% of all imports by value and 16% by volume. Denmark was a small importer of paper-based stationery from DCs, similar to Greece. Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer Publication date 30.06.2011 Paper-based stationery in Denmark Leading DC suppliers (by volume) were: China (78% of total, 1.7% average annual decrease), India (11%, +11%) and Indonesia (4%, -30%). China maintained its leading position. The top 5 exporters (including Turkey and Malaysia) represented almost 98% of all DC exports by volume. Figure 1 Leading DC exporters of paper-based stationery 4 3 Tonnes 2 1 0 China India Indonesia Turkey 2006 2008 2010 Malaysia Source: Eurostat (2011) Labels were the leading group of imports. 27% of DC imports valued at € 3.7 million were greetings cards, a 26% average annual increase since 2006. Other leading sub-segments were notebooks (€ 3.4 million, +12%), diaries (€ 1.3 million, +18%), children’s albums (€ 1.1 million, +33%), greetings cards (€ 1 million, +3.5%) and calendars (€ 1 million, -17%). Figure 2 DC imports of paper-based stationery by sub-segment, 2010 share based on € million 27% 31% 8% 10% Labels Notebooks Diaries 25% Children's Albums Others Source: Eurostat (2011) Average DC import prices increased. There was an increase in DC import prices to € 3.48 in 2010 from € 2.57 per tonne in 2006, while average intra-EU prices decreased to € 3.89 from € 5.18, making intra-EU import prices 12% higher than average DC import prices. Retail prices vary between different sales channels. Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer Publication date 30.06.2011 Paper-based stationery in Denmark The great diversity of products creates a wide divergence in price points. According to Danish National Statistics, prices of miscellaneous printed matter and stationery and drawing materials increased by 7.8% between the end of 2006 and 2010, while the average of all price increases over the same period was 9.3%. Key opportunities The climate change agenda is very important in Denmark. Danish consumers expect all paper products to be produced with particular consideration for the environment. Danes are amongst the leading consumers in the EU to demand to see proof of good environmental practice in the supply of paper products. The paper segment – due to the impact on forests – has been the focus of much attention. It should also be noted that price is also important, so the concept of sustainability is not exclusive. DC exporters should be sure of their environmental credentials before considering entering the Danish market. Other opportunities include: • Labelling is important for paper-based products. As well as the global certification scheme through the FSC (Forest Stewardship Council), which is quite well known in Denmark, the Danish eco-label – http://www.ecolabel.dk – covers a number of products in this sub-sector. DC exporters should familiarise themselves with the various criteria involved in conforming to the standards. • Handmade paper products are popular in Denmark. There are a number of people that make their own products who may be interested in also supplying interesting products from another country if the new products could broaden their own range. An example of such a Danish company is Papirmageriet – http://www.papirmageriet.dk. A further source of ideas can be found in the creative hobby channel, such as http://www.cchobby.dk • The online channel is especially strong in Denmark. DC exporters should identify specific retailers of paper stationery with a view to supplying them directly. How to approach the market The main trade channels for market entry are either via wholesalers and importers that sell on to retailers, or direct to larger retailers if your size allows it. The trade is relatively concentrated but further consolidation and mergers are predicted. You need to determine whether you are approaching the private user segment, the office, corporate gift or school segment. Interesting channels include: • Erik Justesen – http://www.justesen.dk – is a leading wholesaler of stationery products. Office Supplies Denmark (OSD) – http://www.osd-as.dk – is the largest purchasing organisation covering 34 retailers. In this network are Redoffice – http://www.redoffice.dk, Alt til Kontoret http://www.alttilkontoret.dk/ - and dealers within the SKI Consortium – http://www.ski.dk, including Zap-in – http://www.zap-in.dk - and Lohse – http://www.lohsepaper.dk. Another buying group is In/out – http://www.bogpa.dk, supplying the 5 Kontorting outlets – http://www.kontorting.dk – and Boresko – http://www.boresko.dk - amongst others. • Remmer – http://www.remmer.dk – is a family-owned contract stationer, a member of the Interaction alliance of wholesalers and distributors. Scanoffice – http://www.scanoffice.dk – and CC&CO – http://www.cc-co.dk – are other well-established suppliers to the industry. CC&CO has a strategic relationship with Office Depot. Other specialists include Lynge Papir & Kontor http://www.lyngepapir-kontor.dk/ - and Sivertson & Co – http://www.totalkontor.dk. The Swedish distributor Bungers is also active in Denmark – http://www.bungers.dk. Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer Publication date 30.06.2011 Paper-based stationery in Denmark • • • Leading office product specialists include Lyreco – http://www.lyreco.dk, Staples Advantage – http://www.staplesadvantage.dk, Esselte – http://www.esselte.dk, KontorCirklen – http://www.kontorcirklen.dk - and Lomax – http://www.lomax.dk. There is no major hypermarket presence. Department stores such as Magasin du Nord - http://www.magasin.dk - with 6 outlets and Illum - http://www.illum.dk – sell paper-based stationery. Paper stationery can be found in some book shops. One book chain selling stationery, particularly for school is Boger & Papir - http://www.boegerogpapir.dk/. Kon-trip – http://www.kon-tur.dk – is an association of 67 independent bookstores and stationers. Other bookstores include a number of chains operated by Index Retail. In addition, toy retailers sell stationery for children. Top-toy – http://www.top-toy.dk – is the leading group, operating over 100 outlets. Mail order and online sales are important. Important specialists include Staples Quill – http://www.staplesdirect.dk – and Kontorartikler – http://www.kontorartikler.dk. You need to decide whether to approach this market directly or indirectly. See the module on distribution strategy for more information. Information on buyer requirements can be found in the module on buyer requirements. If you make a direct approach, it is recommended that there is some personal communication before a trading relationship commences. Developing country exporters may approach customers in Denmark through direct (e-) mail, personal visits (as follow-up), inviting potential customers to visit you in your country, building a network and visiting international trade fairs. Other interesting contacts • • • Interesting trade fairs include Formland – http://www.formland.dk – which is a gift fair including some stationery items, taking place in Herning each February. The main trade association for office and paper products is Konpa – http://www.konpa.dk. Stationery items are sold through many bookshops. Links to some shops can be found via the Danish Booksellers Association http://www.boghandlerforeningen.dk/. The Association of Promotional Items – http://www.bfr.dk – also has links to suppliers. Kontor Papir – http://www.kontorpapir.dk – is the leading trade publication, published ten times a year. This survey was compiled by Searce in cooperation with Yolanda Netto Disclaimer CBI market information tool: http://www.cbi.eu/disclaimer Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer Publication date 30.06.2011