Duque Papetiers Gros: Market Analysis and Expansion Feasibility in Germany

Report for Duque Papetiers Gros

Date: 19th June, 2018
Table of Contents
1. Introduction...............................................................................................................................1
2. Analysis of Issues for Duque Papetiers Gros............................................................................2
2.1 An Overview of the Wholesale Stationers Market in Germany.........................................2
2.2 Annual Spending on Writing/Drawing Materials per Capita.............................................4
2.3 Analysis of Duque’s last three financial years of sales data (2015-2017)..........................6
2.4 Feasibility of Expanding to Germany & International Standards.......................................8
2.5 Costs of a New Building...................................................................................................10
2.6 Mean Value of Orders.......................................................................................................11
2.7 Customer Satisfaction.......................................................................................................12
3. Conclusions.............................................................................................................................14
4. References...............................................................................................................................15
5. Appendices..............................................................................................................................16

1. Introduction
Undertaking a proper analysis of a market and initiating problem solving helps in the proper
understanding of the financial position of the market that the industry is willing to operate into
and to also understand the performance and operational trends. If various organizations initiate
the processing of data analysis effectively then it will allow them to explore their potential and
the ability to provide services in an inclusive manner. The French company Duque Papetiers
Gros is a wholesale provider of stationeries and they specialize in printer cartridges, general
office supplies and paper bases supplies. Germany is considered as one of the best markets for
stationery business, which provides different companies with the opportunity to earn profits.
Duque Papetiers Gros is looking forward to initiate their business operations in European
countries, focusing on Germany and Belgium mainly.
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2. Analysis of Issues for Duque Papetiers Gros
2.1 An Overview of the Wholesale Stationers Market in Germany
The wholesale stationery market of Germany is highly popular and is home to some of the
most prominent stationery companies that are popular around the world. Some of those
prominent companies include the names of Stabilo, Staedler, Lamy and Faber-Castell (Han and
Ma, 2018). These companies have managed to produce products that are highly convenient for
the use of customers and are attractive enough to be of the innovative nature. The annual
turnover of the whole German stationery industry is more than €14.8 billion (Righetto et al.,
2016). According to the report published by MGCC in the year of 2018, annually €182 was
spent by each individual on stationery items. Therefore, it can be said that the market demand
for stationery items in Germany is significantly high. In the year of 2018, the annual revenue of
the German stationery market surpassed the value of €4000 million and it is being assumed that
the revenue will rise by 6.3% in the forthcoming years.
Figure 1: Production of writing instruments in Germany (2014)
(Source: MGCC Perspectives, 2018)
From the statistics presented above, it can be said that the production of the writing instruments
almost amounted to the cost of 510 million in the year of 2014 in Germany. German stationery
is of great demand in other countries, which is why they also gain substantial amount of profit
in import and in export as well. The demand of stationery items in Germanys displays a
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potential idea of how the French company would be able to function if they are able to address
the needs of the population.
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2.2 Annual Spending on Writing/Drawing Materials per Capita
(Bar Graph- Appendices)
Table 1: Per Capita Expense of 12 countries on stationery items
(Source: MGCC Perspectives, 2018)
The table above demonstrates the annual expenditure of 12 countries in terms of stationery
items. From the above table, it can be addressed that Switzerland and Germany undergoes
highest expenses in terms of using stationery items. Therefore, it can be said that there is a high
demand for stationery items in both of these countries, which leaves various stationery
companies with the scope of expanding their businesses in these countries. The German
stationery market is also one of the biggest sectors contributing in the economy of the country.
According to the statistics demonstrated in the above table, the spending of both the countries
on stationery items constitute about €71 million approximately. The market of both these
countries would allow the proper functioning of other company’s business activities.
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