Duque Papetiers Gros: Market Feasibility Analysis for Expansion into Germany

Report for Duque Papetiers Gros
Date: 26th of 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.........................................................................................................................13
4. References...........................................................................................................................15
5. Appendices..........................................................................................................................16

1. Introduction
Determination of market feasibility is extremely important for any organization before
undertaking the decision of business expansion in that specific country. Duque Papetiers Gros
is a French company that specializes in wholesale stationery items. The company specializes in
writing/drawing materials, general office supplies and other stationery items. The stationery
market has turned out to be favourable for the company and in the present situation the
company is looking forward to expand their business in other European countries. For the
company it is important that their management is able to conduct proper analysis of the market
they consider is stable for their business. Duque is currently looking forward to initiate their
business operations in Germany and Belgium. Conducting a proper analysis will allow them to
create a proper framework of a contingency plan to overcome any problematic situation in the
business activity.
1

2. Analysis of Issues for Duque Papetiers Gros
2.1 An Overview of the Wholesale Stationers Market in Germany
The German stationery market is one of the most successful markets in Germany and is home
to some of the biggest names in the stationery market. The German stationery industry also has
significant amount of contribution in the economic development of the country. More than half
of the wholesalers and the retailers of the industry have witnessed profits in their business
operations. Companies such as Montblanc, Faber-Castell, Stabilo and many others begin their
journey from the stationery market of Germany (Dash et al., 2018). The stationery market of
Germany is considered highly favourable and has a turnover amounting to almost €15 billion
every year. The demand for German stationery items is increasing every year and the market
suitability will be easier to identify if the production of the stationery items of the country can
be identified.
Figure 1: Production of some specific stationery items in Germany
(Source: MGCC Perspectives, 2018)
The graph above depicts the production of some of the stationery items in the year of 2014.
The production cost of stationery items 2014 amounted to the approximate value of €510
million. The demand of stationery items in Germany is high due to the companies’ benchmark
of incorporating creativity and popular trends in their items (Righetto et al., 2016). The export
2