CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

MARKET SECTOR

The EU market for exercise books, memo and refill pads

Publication date: December 2007
Report summary This CBI market survey discusses the following highlights for the EU market for exercise books, memo and refill pads: Total EU consumption1 of exercise books, memo and refill pads in 2005 amounted to 1.4 billion. That year, the six reviewed markets2 accounted for 64% of total EU consumption. This percentage gives a general picture of the share of these markets in EU exercise books, memo and refill pads production. The exercise books, memo and refill pads market in the reviewed markets represented a value of 272 million3 in 2006. Please bear in mind, that the sources of data for consumption for the total EU and the six reviewed markets are different. In comparison to previous years, the reviewed markets experienced a decrease, as it amounted to 270 in 2005. For the future, only very slight fluctuations in the market are expected, as it is mature and static in its nature. Exercise books, memo and refill pads production in the EU countries represented a value of 856 million in 2005. The total import value of exercise books, memo and refill pads into the EU increased between 2004-2006 by 21%, reaching a value of 582 million in 2006. The trade structure of stationery in the EU is complex, as stationery is distributed through many different intermediaries and retailers. In the last decade the European stationery market has become increasingly competitive and this is due to the distinct maturity of the market, especially in the North-western part of Europe. Imports coming from developing countries accounted for 34% of the total imports in 2006. The most important developing country suppliers are: China, India, Indonesia, Malaysia, and Turkey. This survey aims to provide developing-country exporters of exercise books, memo and refill pads with product-specific market information related to gaining access to the EU market(s). By focusing on the EU market(s) for one product(group), this document provides additional indepth information, complementary to the more general information and data provided in the CBI market survey The stationery, office and school supplies market in the EU (2007), which can be downloaded from http://www.cbi.eu/marketinfo Detailed information on the selected product (group) is given in appendix A. This survey discusses the EU in general and the following markets in particular: Germany, France, Spain, Italy, the UK, the Benelux, and the Nordic countries. 1 Market description: consumption and production

Consumption Total EU consumption of exercise books, memo and refill pads in 2005 amounted to 1.4 billion. That year, the six reviewed markets accounted for 64% of total EU consumption. This percentage gives a general picture of the share of these markets in EU exercise books, memo and refill pads production. Please bear in mind, that the sources of data for consumption for the total EU and the six reviewed markets are different. The exercise books, memo and refill pad market in the reviewed countries represented a value of 272 million in 2006 and showed a marginal decrease over the previous year ( 270 million in 2005). According to the agencies
1

Apparent consumption (imports+production-exports) extracted from the Eurostat database is only available up to 2005. 2 The six markets reviewed in this survey are: Germany, France, Spain, UK, Benelux, and the Nordic countries.
3

MSP (Manufacturing Selling Prices) The price at which manufacturers sell products to resellers or direct to users.

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CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

conducting sector-specific research in the field, for the future, only very slight fluctuations in the market are expected, as it is mature and static in its nature. In general, the exercise book, memo and refill pad market can be segmented into three major market segments: professional end users, small office and home office users (SoHo), and private end users. The demand for exercise books, memo and refill pads may vary among the segments in the reviewed countries. Chapter 1 Consumption of the CBI survey The stationery, office and school supplies market in the EU (2007) elaborates further on the segmentation of the stationery market. The increasing penetration of PCs, internet and e-mail negatively affects the demand for exercise books. In order to combat this competition, producers are undergoing continuous product innovation. Increasing imports from the Far East and China are driving down average prices. In Germany, the market for exercise books was estimated to be worth 32 million, whereas for memo and refill pads it was estimated to be worth 37 million, both in 2006. Towards the end of this decade, research indicates that the market for exercise books, memo and refill pads will increase slightly, up to respectively 32 million and 37 million. According to sector-specific research, a growing niche for high quality is discernible, which will compete with the increasing use of personal computers. Consumption in volume terms is mature in these markets, in Germany. Innovative solutions in the memo and refill pads market, like memo pads for left-handers, seem to have a positive impact on sales. In France, the market for exercise books was estimated to be worth 34 million, whereas sales of memo and refill pads were estimated to be worth 29 million, both in 2006. Towards the end of this decade, research projects that sales of exercise books will increase slightly, up to 35 million. Memo and refill pad sales are also projected to increase slightly, reaching 30 million. In France, the back to school period is an important period in terms of demand in volume for exercise books. In Spain, the market for exercise books was estimated to be worth 17 million, whereas the market for memo and refill pads was estimated to be worth 13 million, both in 2006. Towards the end of this decade, research projects that sales of exercise books will decrease slightly, to 16 million. Memo and refill pads are projected to decrease slightly, stabilizing at 12 million. A large driver for demand for exercise books in Spain is the school and student population. Overall, the exercise books, memo and refill pads markets are mature in Spain, pressured by competition from personal computers and other electronic devices. In Italy, the market for exercise books was estimated to be worth 35 million, whereas the market for memo and refill pads was estimated to be worth 15 million, both in 2006. Towards the end of this decade, research projects that sales of exercise books will increase slightly, up to 36 million. Memo and refill pad sales are projected to decrease slightly, stabilizing at 15 million. Demand for exercise books has declined slightly in recent years, as a result of the decreasing number of Italian children. Italian children are seen as an important end user of this product. Increased use of electronic devices such as personal computers and e-mail among Italian office populations also has an impact on the demand for exercise book, memo and refill pads. In the UK, the market for exercise books was estimated to be worth 34 million, whereas sales of memo and refill pads were estimated to be worth 32 million, both in 2006. Towards the end of this decade, research projects that sales of exercise books will increase, up to 35 million. The market for memo and refill pads are projected to increase in the same manner, reaching 34 million. Increased use of personal computers in the educational sector, which is the key driver for demand, has slightly affected the demand for exercise books. The volume demand for memo and refill pads is projected to grow in line with school and student population growth. In this sector, research indicates a shift towards functionality, over innovation. In the Benelux, the market for exercise books was estimated to be worth 15 million, whereas the market for memo and refill pads was estimated to be worth 11 million, both in 2006. Towards the end of this decade, research projects that sales of exercise books will

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CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

decrease slightly, down to 14 million. Sales of memo and refill pads are also projected to decrease slightly, stabilizing at 10 million. The market for exercise books is a seasonal one, as the majority of sales come from the back to school period. The decline in volume demand for memo and refill pads is a result of the increasing use of personal computers. In the Nordic countries, the market for exercise books was estimated to be worth 12 million, whereas the market for memo and refill pads was estimated to be worth 10 million, both in 2006. Towards the end of this decade, research projects that sales of exercise books, memo and refill pads will decrease slightly, to respectively 11 million and 9 million. Increased penetration of personal computers among office populations and declining school populations are said to affect the volume demand for exercise books, memo and refill pads in a negative way.

Production This part of the chapter focuses on the production figures for exercise books, memo and refill pads, and mentions the leading manufacturers in the markets reviewed4. Total production, in value and volume, for exercise books, memo and refill pads in the EU amounted 1424.5 million in value, with a volume of 294.7 million primary units in 2005. Table 1.1 shows production of pencils for 2001, 2003, and 2005. The seven reviewed European countries are further described below the table, describing both increases and decreases in value and volume. Table 1.1 Production in the EU (millions of euros; and millions of primary units)
Product Exercise books in value Exercise books in volume 2001 1,502.2 1,67.2 2003 1,488.6 196.7 2005 1,424.5 294.7

Source: Eurostat5 database (2006) In 2005, Germany produced exercise books to a value of 212 million, the volume of this production cannot be extracted from the Eurostat database. In 2004, Germany produced respectively 227 million worth of exercise books, with no volume recorded at Eurostat. This indicates a decrease in production of 7% in value. Leading manufacturers in exercise books are Herlitz (www.herlitz.de), Landr (www.landre.de), Baier and Schneider (www.brunnen.de), Bach and Demmler , and Toppoint. Leading manufacturers in memo and refill pads are Landr (www.landre.com), Bauer and Schneider (www.brunnen.de), Pelikan, and Toppoint. In 2005, France produced exercise books to a value of 200 million, with a volume of 60 million primary units. In 2004, France produced 218 million worth of exercise books, with an unknown volume, according to the Eurostat database. This indicates a decrease in production activities of just over 8% in value. Leading manufacturers are Exacompta Clairefontaine (www.exacomptaclairefontaine.fr) and Groupe Hamelin (www.groupe-hamelin.com), for exercise books, memo and refill pads. In 2005, Spanish production of exercise books amounted to 175 million, with a volume of 60.5 million primary units. In 2004, Spain produced 181 million worth of exercise books, with a volume of 57 million primary units. This indicates a decrease of just over 3% in value and a increase of almost 7% in volume. Leading manufacturers are Enri, Exacompta Clairefontaine (www.exacomptaclairefontaine.fr), Unipapel (www.unipapel.com) and Liderpapel (www.liderpapel.com), for exercise books as well as for memo and refill pads.
4 5

the companies mentioned are based in the country under question, but are MNEs.

The Eurostat database is not exhaustive in its information. Numbers for certain years and countries might be missing and this may give deceptive impression in some cases. One should not fully rely on the statistical background provided by the database.

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CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

In 2005, the United Kingdom produced exercise books to a value of 207; the information on volume of primary units is not available. In 2004, the UK produced 225 million worth of exercise books. This indicates a decrease of slightly over 8% in value. Leading manufacturers of exercise books, memo and refills pads are Victor Stationery, William Sinclair, and Hamelin. In 2005, the Benelux produced exercise books to a value of 47 million, with a volume of 8 million primary units. In 2004, the Benelux produced 50 million worth of exercise books, with a volume of 9 million primary units. This indicates a decrease of over 5% in value, and a decrease of 12% in volume. Leading manufacturers of exercise books are Aurora, Groupe Hamelin, Exaclair, Cadara, and Papeteries Mottart. In the memo and refills market, leading manufacturers are Aurora, Lutkie Cranenberg, Esselt, Exaclair, Herlitz, and Papeteries Mottart. In 2005, the Nordic countries6 produced exercise books to a value of 16 million, with a volume of 8.5 million primary units. In 2004, Italy produced 4 million worth of exercise books, memo and refill pads with a volume of 6.5 million primary units. This indicates a large decrease in production value and a decrease of about 30% in volume.7 Leading manufacturers of exercise books in the Nordic countries are Smead, Surora, Bantex, and Esselte. For memo and refill pads, Bantex and John Dickinson are the leading manufacturers. Opportunities and threats + In many countries, opportunities for exercise books, memo and refill pads lie in the education sector, and also the back-to-school period. + The exercise books, memo and refill pads market is mature, but production figures have decreased significantly over the last years. - Lack of growth in the ball-point markets indicates a lack of opportunity. - The penetration of electronic devices such as personal computers and e-mail negatively affect the volume growth in consumption in the European Union. The same development or trend can be an opportunity for one exporter and a threat for another; exporters should analyze if these developments represent an opportunity or a threat and the outcome of this analysis depends on the specific situation of an exporter. We refer to chapter 7 Opportunity or threat?, of the EU survey Stationery, office and school supplies market in the EU (2007) for more information on opportunities and threats. 2 Trade channels for market entry

This chapter gives a brief overview of distribution of exercise books and pads and an overview of relevant distribution intermediaries (importers/wholesalers, contract stationers, school suppliers etc.). For a detailed description of the various types of distribution channels, see Chapter 3 Trade channels for market entry of the CBI Market survey Stationery items, Office and School Supplies (2007).

In the Nordic production figures, Norway is excluded, since the Eurostat database does not show any numbers of production for Norway. Information about main manufacturers does incorporate Norway. 7 These numbers for the Nordic countries deviate rather much, as a result of non-corresponding matches among the countries production in value/volume.

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CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

Figure 3.1

Trade and distribution channels for stationery

The trade structure of stationery in the EU is complex, as stationery is distributed through many different types of intermediaries and retailers. Figure 3.1 gives a simplified picture of the trade structure in the stationery market and shows the basic relation of the various kinds of intermediaries. As can be seen, exercise books and pads generally reach the end-users through many different intermediaries. It is important to note that distribution structures differ quite substantially per user segment. Large professional users generally purchase their exercise books and pads, and other stationery requirements, through contract stationers and, more marginally, through direct sales from manufacturers and wholesalers. The medium-sized Professional users (10 to 100 office workers) are often supplied by wholesalers, office supply dealers, superstores and mail-order companies. There can, however, be a certain overlap between the distribution channels used to service medium-sized and large professional users. Schools and Institutions generally have their own specific suppliers. These so-called school suppliers are under increasing pressure from other suppliers, who are increasingly targeting their marketing efforts at schools and learning institutions. But some school suppliers are trying to aim for new segments in the office sector. The SoHo and Private end-users, including schoolchildren, students and families, typically use a variety of distribution channels, among which are high street retailers (including independent retailers and chains), superstores, hypermarkets, department stores and mail order. Most important distribution channels for developing countries exporters Most intermediaries discussed can be of interest for the manufacturers in a developing country. The following intermediaries may, in our opinion, be an option for manufacturers in Developing Countries: Agents - An agent is an intermediary who does not keep stocks. The agent may serve as an intermediary between the manufacturer and the wholesaler or retailer, receiving a commission from the former. The agent usually has a good knowledge of distribution structures and consumer behaviour. The problem of working through an agent is, however, that the manufacturer is totally dependent and has to trust the quality of the agent's knowledge, commitment and selling ability. Importers/ wholesalers - Importers are familiar with local markets and can supply considerable information and guidance to the overseas manufacturer, such as the handling of import and export procedures and holding of stock, in addition to the primary business of buying and selling. Furthermore, they have strong relationships with suppliers and buyers all over the world. Buying Groups - Buying Groups source stationery on behalf of their members. Negotiating competitive pricing and other marketing benefits including rebates and co-op funds are the main functions of buying groups. The Buying groups generally have strong import

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CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

programs and can therefore be an interesting trading partner for an exporter in a developing country. Retailers - Some retailers do import directly from manufacturers in low wage countries. The traditional retail formats are under pressure from new formats. Super- and hypermarkets nowadays offer a wide range of stationery. Relatively new retail formats, like superstores and e-commerce, are also entering the stationery market.

Useful sources Below are listed the most important contract stationers, importer/wholesalers, dealers, buying groups, chains of retailers and department stores, involved in the distribution of exercise books per country. Germany Karstadt http://www.karstadt.de/ Otto Office http://www.otto-office.com/ EK Grosseinkauf eG, http://www.ek-grosseinkauf.de/ Herlitz PBS AG http://www.herlitz.de/ Schaefer Shop http://www.shaefer-shop.de/ Alka Gmbh and Co. KG http://www.pbs-alka.de/ PBS http://www.deutschepbs.de/ Herchenhahn and Zylla http://www.h-z.com/ UK

WH Smith - http://www.whsmith.co.uk/ Snopake - http://www.snopake.com/ Office A-Z - http://www.officea-z.com/ Kingfield Heath - http://www.kingfieldheath.com/ Europa Office - http://www.europaoffice.com/ Office Club Ltd - http://www.officeclub.co.uk/

France Auchan - http://www.auchan.fr/ Carrefour - http://www.carrefour.fr/ Groupe - Majuscule http://www.majuscule.fr/ Guilbert (Office Depot) - http://www.guilbert.fr/ Groupe Casino - http://www.groupe-casino.fr/ G3+ - http://www.intropa.fr/ Galeries Lafayette - http://www.galerieslafayette.com/ Benelux Inno - http://www.inno.be/ Ahrend - http://www.ahrend.be/ Carrefour - http://www.carrefour.be/ Quantore - http://www.quantore.nl/ Stationery Team - http://www.stationeryteam.nl/ New Edition - http://www.newedition.nl/ Vado Bag - http://www.vadobag.nl/ Koks Gesto - http://www.koksgesto.nl/ Alberts Nienhuis - http://www.albertsnienhuis.nl/ Bruna - http://www.bruna.nl/ Vroom and Dreesman - http://www.vroomendreesman.nl/ Hema - http://www.hema.nl/ KTC - http://www.kangaro-ktc.com/ Quantore - http://www.quantore.nl/ Timmermans - http://www.timmermansnet.com/

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CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

Spain El Corte Ingles - http://www.elcorteingles.es/ Distributiones Coplan SA - http://www.coplansa.com/ RED - http://www.grupoccs.com/ Sett Grupo - http://www.settgrup.es/ Comercial del Sur de Papeleria S.A. - http://www.liderpapel.com/ Makro Paper - http://www.almacenespaez.com/ Nordic countries Svanstroms - http://www.svanstroms.com/ Av Form - http://www.avform.dk/ Ahlens - http://www.ahlens.se/ Beltton Oy - http://www.beltton.fi/ EMO A/S - http://www.emo.no/ Nio Fem - http://www.niofem.se/ Bogpa A/S - http://www.bogpa.dk/ Meydan Moller and Landschultz A/S - http://www.mml.dk/ Rich Andvord A/S - http://www.andvord.no/ Price structure The traditional route from manufacturer to end-user is: manufacturer -> importer/wholesaler -> retailer -> private end-user. Below you will find an indication of the average margins. Please note that information on margins should always be updated and checked for the specific product / market combination. Traditional trade price structure End-users (street) price inclusive of VAT VAT 19%8 End-users (street) price exclusive of VAT Average margin retail outlet / shop 38% Retailers purchase price Average wholesalers/importers margin 27% Wholesaler/importers purchase price in house Import and transport cost 20% over fob! Wholesaler/importers purchase price fob Transport % import cost Ex works

2,50 0,40 2,10 0,80 1,30 0,57 0,73 0,12 0,61 0,10 0,51

A multiplier of 4 is applied to a manufacturers FOB price to estimate retail prices (in the above example that multiplier exactly amounts to 4.1). Throughout the different trade channels margins and prices vary widely. In earlier days, in the so-called product driven economy, the manufacturer would calculate his cost price, add his desired profit margin and quote that price to his potential buyers (bottom up method). However, nowadays, the so-called market driven economy manufacturers have started to realize that they and their (potential) buyers/trading partners do not determine the price levels on their own. The price levels in the entire supply chain are for the major part determined by the end-users, the market, how much are they willing to pay for the product. For generic products this is generally much lower than for specialised or branded products. Selecting a suitable trading partner A possible way of finding a business partner is the CBI Company Matching Tool, which can appropriately match your company to a European partner. This can be the case only if your

Vat: rates vary per EU country

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CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

company meets the criteria of CBI for an eligible candidate and if it produces products that correspond with the eligible product groups. For more information on that and further procedures consult the CBI site http://www.cbi.nl. Other suitable ways of finding a business partner(s) are given in Chapter 5 of the CBIs Export planner, namely Selecting trade partners. Possible ways of searching are through Internet, short-listing possible partners. You should travel around, pick up information, compare and select. An idea here is to visit trade fairs and exhibitions in any one of the selected countries: Eventseye - http://www.eventseye.com/fairs/event_tg171_1_1.html - Trade Shows, Exhibitions, Conferences and Business Events Worldwide Biz tradeshows - http://www.biztradeshows.com/office-supplies/ Infomat - http://www.infomat.com/calendar/infsg0000015.html The Wholesaler UK - http://www.thewholesaler.co.uk/trade_diary_dates.html 3 Trade: imports and exports

Imports The total import value of exercise books into the EU in 2006 amounted 566.1 million. This represents an increase of 16% from 486.2 million in 2004. The following table (3.1) shows the value of imports into the EU. These are divided into intra-EU imports, extra-EU imports9, and finally imports from developing countries. Furthermore, the table shows the leading suppliers of 2006 and their share in % of import value. Table 3.1 of value
Total EU

Imports and leading suppliers of exercise books2002 2006, share in %

2002 2004 2006 Leading suppliers in 2006 mln mln mln Share in % 268 300 344 Intra EU: France 23.7%, Italy 20.9%, Germany 16.1%m UK 7.5%, Belgium 5.4%, Others 26.4%. 36 36 29 Extra EU ex. DC*: Hong Kong 32.2%, USA 21.0%, Taiwan 13.9%, Singapore 12.9%, Switzerland 11.5%, Others 8.5%. 128 150 194 DC*: China 67.1%, India 8.9%, Indonesia 6.4%, Malaysia 5.9%, Turkey 4.5%, Others 7.2%. 45 53 65 Intra EU: France 44.3%, Italy 28.7%, the Netherlands 8.0%, Poland 7.8%, UK 4.0%, Others 7.2%. 6 5 3 Extra EU ex. DC*: Switzerland 26.9%, Hong Kong 22.3%, USA 21.3%, Taiwan 19.5%, Japan 3.4%, Others 6.6%. 12 18 21 DC*: China 77.2%, Malaysia 6.7%, India 5.5%, Indonesia 2.4%, South-Korea 2.1%, Others 6.1%. 35 39 48 Intra EU: Italy 27.9%, Belgium 19.6%, Germany 19.3%, UK 11.7%, the Netherlands 7.8%, Others 13.7%. 5 5 4 Extra EU ex. DC*: USA 60.9%, Switzerland 15.9%, Taiwan 12.9%, Singapore 3.4%, Hong Kong 2.6%, Others 4.3%. 9 10 13 DC*: China 60.6%, Turkey 14.5%, SouthKorea 6.9%, India 3.3%, Nepal 3.3%, Others 11.4%. 25 24 22 Intra EU: France 42.0%, Italy 28.0%, UK 13.6%, Germany 8.3%, Portugal 2.9%, Others 13.7%. 1 1 1 Extra EU ex. DC*: Taiwan 61.8%, USA 14.1%, Switzerland 9.5%, Israel 5.7%, Share (%) 61 %

5%

34%

Germany

73%

34%

23%

France

74%

7%

19%

Spain

67%

2%

Extra-EU countries excludes developing countries throughout the whole survey.

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CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

2002 mln 9

2004 mln 8

2006 mln 10

Italy

20

25

26

15

UK

41

44

50

12

13

13

58

61

70

Benelux

41

40

40

14

20

25

Nordic countries

22

23

26

11

Leading suppliers in 2006 Share Share in % (%) Japan 4.1%, Others 4.8%. DC*: China 61.2%, Indonesia 22.9%, Turkey 31% 3.2%, India 3.2%, Mexico 2.2%, Others 6.1%. Intra EU: France 57.2%, Germany 16.2%, 61% Slovenia 8.9%, UK 5.9%, Romania 4.5%, Others 7.3%. Extra EU ex. DC*: Switzerland 54.1%, 3% Taiwan 24.8%, USA 14.4%, Hong Kong 4.1%, Japan 1.3%m Others 1.3%. DC*: China 79.5%, Indonesia 13.3%, India 36% 2.4%, Mexico 1.5%, Lebanon 1.4%, Others 1.9%. Intra EU: France 28.8%, Italy 26.0%, 38% Estonia 16.5%, Germany 12.2%, Belgium 4.5%, Others 12.0%. Extra EU ex. DC*: Hong Kong 42.7%, 10% Singapore 26.4%, USA 12.9%, Taiwan 7.6%, Japan 5.2%, Others 5.2%. DC*: China 63.8%, India 18.3%, Malaysia 52% 8.4%, South-Korea 4.1%, Indonesia 3.2%, Others 2.2%. Intra EU: France 27.9%, Germany 23.1%, 59% Italy 7.5%, Estonia 5.3%, UK 3.4%, Others 32.8%. Extra EU ex. DC*: Hong Kong 62.6%, 4% Taiwan 11.4%, USA 8.6%, Singapore 4.7%, Japan 4.7%, Others 8.0%. DC*: China 68.8%, Malaysia 8.0%, South37% Korea 5.6%, Indonesia 5.4%, Turkey 4.7%, Others 7.5%. Intra EU: Germany 32.2%, Estonia 12.2%, 66% France 9.0%, UK 4.9%, the Netherlands 3.6%, Others 38.1%. Extra EU ex. DC*: Hong Kong 54.5%, 4% Taiwan 14.9%, USA 10.8%, Israel 3.5%, Switzerland 2.4%, Others 13.9%. DC*: China 79.0%, Indonesia 6.4%, 30% Malaysia 5.9%, India 4.3%, Philippines 1.5%, Others 2.9%.

Source: Eurostat (2006) *Developing Countries

It is necessary to point out that the numbers for 2002 and 2004 consist of EU-25 data, excluding Romania and Bulgaria. 2006 incorporates these two countries: the EU. Total Intra-EU imports grew by almost 15% from 2004 to 2006. Imports from developing countries grew even more strongly, by almost 29% from 2004 to 2006. The main supplier of these imports from developing countries is China, by far the largest supplier in all the reviewed countries, and responsible for 67% of all imports from developing countries. From a broader perspective: 23% of total imports into the EU come from China. The largest importer from developing countries by value and by share is the UK; almost 53% of its imports come from developing countries. The UK is followed by the Benelux countries and Italy, importing over one-third of their total imports from developing countries. Extra-EU imports have substantially decreased, down over 21% from 2004 to 2006, following a trend over the last few years. These imports are being replaced by imports from developing countries and from within the EU.

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CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

Total imports into Germany amounted 89 million in 2006 compared to 76 million in 2004. Intra-EU imports increased by 25%, compared to 2004, whereas extra-EU imports suffered a decline of 35%. Imports into Germany from developing countries went up by 15%. Imports into France amounted 65 million in 2006, up from 55 million in 2004. While the statistics show an increase of imports compared to 2004, from within the EU (almost 23% increase) and imports from developing countries (just over 24% increase), a decrease can be seen in ExtraEU imports, down 23%. Imports into Spain amounted 33 million in 2006, down from 34 million in 2004, a decrease of just over 3%. Imports from developing countries increased, as well as imports from within the EU. Imports from extra-EU countries almost halved. Imports into Italy amounted to 42 million in 2006, rising from 36 million in 2004, an increase of 18%. The largest increase of imports can be seen from developing countries, almost doubling from 9 million to 15 million. Imports into the UK amounted to 132 million in 2006, rising by 12% from 118 million in 2004. While extra-EU imports showed a very small decrease, both intra-EU imports and imports from developing countries increased by 14%. Imports into the Benelux amounted to 67 million in 2006, almost 9% up from 62 million in 2004. Imports from within the EU slightly decreased, extra-EU imports went up a bit, and imports from developing countries grew by 26%. Finally, imports into the Nordic countries increased by 8%, showing increases in the imports from intra-EU countries and developing countries. Exports The 27 countries of the European Union exported exercise books to the amount of 520 million in 2006, compared to exports worth of 517 million in 2005. This indicates a slight increase of exports of less than 1%. Germany exported exercise books worth 93 million in 2006, against 88 million in 2005. Frances exports were worth 105 million in 2006, against 108 million in 2005. Spain exported exercise books to a value of 13 million in 2006, down from 13 million in 2005. Italys exercise books exports were worth of 125 million in 2006, slightly rising from 120 million in 2005. The UK exported 52 million worth of exercise books in 2006, against 56 million in 2005. Benelux exports were worth 50 million in 2006, compared to 47 million in 2005. The Nordic countries exports reached 16 million in 2006, down from 18 million in 2005. The Netherlands, Belgium and Luxembourg may be re-exporting a high share of stationery goods, as their imports per capita are very high. For instance, the Netherlands re-exports about 50% of its imports. For the other countries, the re-export is not as marked as for the three countries mentioned. Opportunities and threats + Increasing amount of imports, and also an increasing share coming from developing countries. + From 2006, some buyers who have in the past decade been very actively buying from China, clearly and explicitly initiated new sourcing activities outside China, an important large volume supplier in this sector. In most cases, the reasons stated were increasing prices in China and, in some cases, also the ongoing inconsistency in quality and delivery times. + Persistent and relatively high wage increases, combined with low (or even negative) labour productivity growth, have given rise to competitiveness problems for some Member States. Nominal unit labour cost is estimated to have risen by around 2-3% in Spain, Portugal and Finland, and by 3% or more in Greece, Ireland and Italy in 2005. + In Belgium, from 2006 onwards, some economic recovery is expected, albeit at a moderate GDP growth rate close to 2%. While exports should continue to recover in 2006, consumption will benefit from stronger growth in gross disposable income resulting from the final stage of the 2001 direct tax reform and some improvement in employment. + Taking into account real effective exchange rates, unit labour cost rose by around 1-2% in Ireland, Italy and Finland. This has had a negative impact on export performance of these countries, particularly in the case of Italy.

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CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

On the other hand, the pronounced wage moderation in Germany, as reflected in falling unit labour costs in 2004-2006, has provided a substantial impetus to exports, thus contributing to rising export market shares.

The same development or trend can be an opportunity for one exporter and a threat for another; exporters should analyze if these developments represent an opportunity or a threat and the outcome of this analysis depends on the specific situation of an exporter. We refer to chapter 7 Opportunity or threat?, of the EU survey Stationery, office and school supplies market in the EU (2007) for more information on opportunities and threats. Useful sources MPA International http://www.mpainternational.com/ - Research agency Iplusc http://www.iplusc.com/ - Research agency Boleka - http://www.boleka.nl/ - Dutch trade association for stationery items European Writing Instruments Manufacturers Association - http://www.ewima-isz.de/ NOVAKA - http://www.novaka.nl/index.cfm/4,html - Dutch trade association for stationery items Bundesverband Browirtschaft e.V. Internet - http://www.bbw-online.de/ 4 Price developments

Long term developments Books and duplicate/triplicate books will become a niche in the oncoming decade Within the books and pads market there are two categories that belong to this group: analysis books and duplicate/triplicate books. Copiers, software and PCs have taken over considerable numbers of functions of such books. Nevertheless there is still a market for such items. Especially smaller and home offices (the SoHo segment) still appreciate such books to fulfil functions that for them would be far too expensive if they would have to implement such in a PC. The fact that these categories are developing towards niche markets has automatically made them not interesting for Private Labels. As such there is and will be no negative effect on price levels currently and in the near future. Price levels have been able to go up slightly which is expected to be the ongoing trend for the oncoming years; current EU manufacturers have to raise prices as volumes are getting lower. Manufacturers in low cost countries who are flexible in and willing to handle low medium sized orders could benefit from this situation. Innovations have not been introduced recently. Exercise books and double wired notebooks that are driven by large volumes Exercise books and double wired notebooks on the contrary are for an important part driven by the back to school season, large volumes. Private labels have acquired considerable market shares in the EU especially in the non licensed exercise books in, that share is around 70-80% in many EU countries. This has had a slight downward effect on the average price levels. Price levels in countries such as Germany have been able to keep prices stable, a.o. as the importance of Private Labels there is relatively low compared to countries such as Belgium, The Netherlands, Spain and the UK. The average price levels of licensed exercise books has gone up slightly as EU designers have continued to add value by means of special effects and printing techniques to differentiate the covers. Some of those lines, especially the more expensive models do not sell at mass market volumes by the way, an other reason for on average higher prices! Exercise books and double wired notebooks that are driven by smaller volumes The increasing number of different lines and added value also has lead to increasing number of smaller and medium sized order runs, leading to slightly higher prices as well. It is expected this trend will be continued.

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CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

Table 4.1
Segment

Price category and examples

Important product criteria Licensed brand Materials Special effects/finish (e.g. spot lamination) Details/applications Store choices Brand names examples Functional or emotional criteria No brands but Image the end licensed names: users (scholars, Oneill students) want Harry Potter to have Barbie Writing notes Winnie de Pooh (school, Soccer clubs university) No labels or Writing notes private labels (school, Designs university) designed by suppliers of retailers or distributors / importers or by designed retailers No labels Writing notes More basic (school, simple designs, university) but can be good sometimes RSP10 (incl. VAT) A5 0.65 1.25/pce A4 1.50 3.25/pce A5 0.40 0.65/pce A4 0.75 1.50/pce

High

Specialty School office / product shops Book stores Department stores

Middle

Images/pictures Design Materials Special finish Application

Specialty School office / product shops Book stores Department stores

Low

Reasonable lower quality inner paper soft cover No special effects or details and applications

Supermarkets Hypermarkets Chains of discount shops Market place Book and stationery shops

A5 0.20 0.40/pce A4 0.33 0.75/pce

Source: Various web sites

Useful sources We advise you to visit the websites of the many retail chains in the EU during the back to school season. Retailers communicate often on their websites their range of back to school products around May/June and August. Some of the websites also communicate about their range of books and pads outside that season www.carrefour.fr www.kika.at www.manor.ch www.vroomendreesman.nl www.kaufhof.de. 5 Market access requirements

As a manufacturer in a developing country preparing to access the EU, you should be aware of the market access requirements of your trading partners and the European governments. Requirements are demanded through legislation and through labels, codes and management systems. These requirements are based on environmental, consumer health and safety and social concerns. You need to comply with EU legislation and have to be aware of the additional non-legislative requirements that your trading partners in the EU might request. For information on legislative and non-legislative requirements, go to Search CBI database at http://www.cbi.eu/marketinfo, select Exercise books and a country in the category search, click on the search button and click on market access requirements.

10

Retail Selling Price Some suppliers may not be mentioned in a certain price category, but may have products that sell in that level. Here we only mentioned some of the brands as example and to emphasize in what price segment they do play a relevant role!

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CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

Packaging, marking and labelling General information on packaging, marking and labelling can be found in the CBI market survey The stationery, office and school supplies market in the EU (2007). Packaging is a vital part of successful export operations. Export packaging has to comply with a number of additional requirements as export implies longer transport, rougher handling and tougher competition than domestic trading. Consumer packaging has changed a good deal in recent years. Packaging no longer serves the purposes of distribution and protection, but plays an important role in image building, communication and environmental protection. According to the CBI export planner, packaging serves three basic functions: It protects your product during transportation It breaks down your product to sellable units (e.g. transforming staple goods into consumer units), or simply makes the product easily accessible to consumers It conveys a message to the buyer/consumer (marking and labelling) Information on tariffs and quota can be found at http://export-help.cec.eu.int/ 6 Doing business

General information on doing business like approaching potential business partners, building up a relationship, drawing up an offer, handling the contract (methods of payment, and terms of delivery) can be found in CBIs export manuals Export Planner and Your image builder. Furthermore cultural awareness is a critical skill in securing success as an exporter. Information on cultural differences in the EU can be found in chapter 3 of CBIs export manual Exporting to the EU. These manuals can be downloaded from http://www.cbi.eu/marketinfo go to search publications. International business practices The report - The stationery, office and school supplies market in the EU (2006) also contains important information on logistics, terms of payment and delivery, terms of trade and general recommendations. For sector-specific information on that, one can use the link given above. Important sites: Directory of Spanish Export and Import companies - http://directory.camaras.org/ Spanish Chamber of Commerce (Registro Mercantil Central) - http://www.rmc.es/ Boleka - http://www.boleka.nl/ - Dutch trade association for stationery items NOVAKA - http://www.novaka.nl/index.cfm/4,html - Dutch trade association Agency assisting foreigners in doing business in the Nordic countries - http://www.anitamoeller.com ItalTrade - http://www.italtrade.net/ - Business to business international trade help Maison and Objet - http://www.maison-objet.com/ the official trade organization for stationery for France Sales promotion The report - The stationery, office and school supplies market in the EU (2006) also contains important information on trade fairs, international (trade) magazines, after-sales services, internet etc. An overview of the essential sites is given below. Paperworld in Frankfurt - http://paperworld.messefrankfurt.com/ Trade fairs and exhibitions in UK - http://www.exhibitions.co.uk/ International Spring Fair in UK - http://www.springfair.com/ Trade fairs and exhibitions in Italy - Chibi and Cart - http://www.fmi.it/ More information about trade shows in Italy - http://www.biztradeshows.com/italy/ Italian Exhibitions and Trade Shows - http://www.eventseye.com/fairs/event_l21.html Scandinavian trade events - http://www.fairlink.se/ http://www.formland.com/gb/exhibitorinfo/praktisk-info/halloverview.asp Trade shows in Germany - http://www.biztradeshows.com/germany/ German Exhibitions and Trade Shows - http://www.eventseye.com/fairs/event_l161.html

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CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

Trade press OPI Magazine - http://www.opi.net/index.asp? BOSS - http://www.bitverlag.de/ Sector-specific magazine Le Papetier de France http://www.papetierdefrance.com/ - Trade press in France PNP Profession Nouveau Papetier mailto:eltapap@club-internet.fr -Trade press in France KantoorVak Trends and Design http://www.kantoorvak.nl/ - Trade press KBM, Kantoor Business Magazine http://www.kantoornet.nl/ - Trade press Manual - http://www.ifema.es/ - Trade press in Spain Stationery Trade News - mailto:adm.j@tmoffice.co.uk Stationery Trade Review - mailto:alison.bowie@nexusmedia.com Additional information on packaging can be found at the website of ITC on export packaging: http://www.intracen.org/ep/packaging/packit.htm Information on tariffs and quota can be found at http://export-help.cec.eu.int/ 6 Doing business

General information on doing business like approaching potential business partners, building up a relationship, drawing up an offer, handling the contract (methods of payment, and terms of delivery) can be found in CBIs export manuals Export Planner and Your image builder. Furthermore cultural awareness is a critical skill in securing success as an exporter. Information on cultural differences in the EU can be found in chapter 3 of CBIs export manual Exporting to the EU. These manuals can be downloaded from http://www.cbi.eu/marketinfo go to search publications.

This survey was compiled for CBI by DCT b.v. in collaboration with Ms. Netto.

Disclaimer CBI market information tools: http://www.cbi.nl/disclaimer

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CBI MARKET SURVEY: THE EU MARKET FOR EXERCISE BOOKS, MEMO AND REFILL PADS

Appendix A General product description HS CODES

4820.1030 4820.1050 4820.1090 4820.2000

PRODCOM
22.22.20.15 22.22.20.17 22.22.20.19 22.22.20.30

DEFINITION
Writing pads and memorandum pads; notepads and notebooks, without calendars Notepads, notebooks and diaries, with calendars Memorandum pads, writing pads and the like Exercise books

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