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Europe's Ever-Changing Office Supplies and Consumables Channels Merger And acquisition activity has been prevalent in the office supplies and hardware industry for several years, across all parts of the market. For many resellers of office hardware, supplies, and consumables, organic growth has become increasingly difficult to achieve. The increasingly competitive situation for office products resellers can be attributed to several factors, including the emergence of new types of retail outlets selling office products (i.e. department stores, food retailers, hypermarkets), the increase in independent e-tailers selling office supplies, the economic slowdown, currency fluctuations, and the price competition among office supplies and hardware resellers. Sliding profits and escalating debts among channel players have been the catalyst for consolidation.
Consolidation through acquisitions, mergers, and strategic alliances is about gaining critical mass, and achieving a size where buying power and competition on price improves. While much of this consolidation has already taken place in the United States, the market structure in Europe is more diverse and fragmented. This may lead to even more consolidation within the European market in the future. Nevertheless, larger channel players from Europe have been regularly involved in changes of ownership over the past 5 years, and consolidation has also affected many smaller OP resellers. Multi-channel players in particular are seeking growth opportunities, especially in areas like Eastern Europe, where they may not currently be well-represented.
* Post was edited: 2004-09-04 12:52:00
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