The office products market is a very extensive sector composed of specialised niche market segments like paper and stationery, filing products, computer accessories, business machines and general office products. It has also grown through the years by expanding into the non-niche market segments particularly in printing and copying services, office furniture, office appliances and the arts and crafts sector.
In Australia, it is a very lucrative industry as it accounts about A$11.8 billion in revenue as of June 2008, including $A7.5 billion in its core office products market. However, the office products market is on a 2.9% decline in 2009 and expected to decline by 6% by the end of the calendar year. Overall, the global financial crisis has adversely affected the industry’s business situation including niche market segments as well. Market researchers agree that the current business landscape is different as compared with other sectors and so different strategies are required for the office products industry to operate successfully. Despite the discouraging economic indicators, industry officials are still optimistic and hopeful that they can weather the economic crunch.
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The office products market has evolved and now venturing into other sectors particularly in the printing industry. By following the printing industry trends, the industry has collaborated with print providers and commercial retailers to answer the growing need for outsourced and in-house printing. In this collaborative set-up, both parties are ensuring constant income flow and realise their business goals.
Many businesses in the office products market have recently expanded into related market segments like copy centres, which facilitate the creation and printing of business collateral such as business cards and stationery, plus printing and binding of high-quality, high-volume business and engineering documents. As a result, some businesses can compensate their losses on non-peak months. On the other hand, the so-called “Back to School” sales and associated promotions generate needed boost to the businesses. In Australia, the office products market usually held their advertising and marketing campaigns in January.
Market researchers contend that well-run businesses will capitalise on the difficult market conditions by acquiring weak competitors while some will react to market conditions by increasing their market activity, reducing costs, and purging the number of brands. In this way, bigger companies get stronger as they acquire new market and customers.
With this challenging situation brought about by competitive marketing environment and growing operations costs, market research has become a critical component in the success of the office products market. It is interesting to point out that businesses who want to be ahead of the competition by knowing crucial information particularly on market behaviour and new printing industry trends have contracted professional market research firms to help them determine important market indicators like market trends, consumer satisfaction, market growth, brand analysis, and market forecasts and predictions.
No wonder knowing these important market indicators play a crucial role in how businesses in the office products industry do their business. Market research is an important ingredient to business success in this highly volatile market environment.
Author Resource:-Penfold Research Pty Ltd, based in Sydney, New South Wales, Australia, provides businesses in the office products market with information to assist with planning, decision-making and strategy development.
