OPI: In your opinion how has the sector developed in the last year?
Ernst Faber: Like many other sectors, the stamping sector is down compared with previous years. COLOP's export rate ex-Austria is more than 98 percent with sales into more than 120 countries in all continents and we have witnessed differences from region to region.
For instance, some regions are stable and we've even seen positive developments in South America. In other regions and countries we have seen a decrease.
These decreases are based on two factors. Firstly, weakened demand of office products generally. Secondly, difficulties caused by the strong euro exchange rate in some countries including Russia and Ukraine. In these countries we have witnessed a decrease of up to 20 percent.
OPI: How has the economic downturn affected your business?
EF: Everybody in the 'value added chain' has become more cautious. Budgets have been revised. Expenses have been scrutinised more, important things are done immediately, and unimportant ones are cancelled.
OPI: Have you had to change the way you do business because of the downturn?
EF: Our response has been to maintain our product development budgets, but we have become more flexible in terms of production and deliveries. We always have to change, adapt and develop the whole organisation structure.
It is an ongoing process independent of the economic situation; the only differences are the measures taken. The vital thing is to never lose sight of your long-term goals.
OPI: Can you envision any long-term effects?
EF: One of the effects will be a consolidation. Markets are changing, with more mergers, more acquisitions and strategic alliances.
Some companies will disappear because they are not handling the downturn in a professional way. However, some companies will come out of the downturn stronger than they were before.
At the same time, consumer behaviour is changing thanks to the transparency of the internet, and new markets raise the possibility of new sales channels. In all branches the competition will be tougher, environmental impacts will increase. International and nationally imposed obligations will be (hopefully) stricter.
OPI: What would you say are the areas of opportunity for growth in the sector?
EF: We see many areas of growth potential. Particularly the substitution of traditional hand stamps and new innovative products.
We're witnessing a major trend towards products that service the needs and meet the demands of the consumer. They want to see environmentally friendly methods with real and authentic 'green' products or products with additional features.
Our strategy is to differentiate our market approach. Stamp makers have other requirements and needs than buying groups, contract stationers and mail order companies, for instance.
It is important to serve different channels with the right products and concepts. We support each market sector to its specific needs. The art is to link all these areas together with potential growth from improved sales and communication tools, including developing new e-business.
OPI: What about growth on a global basis?
EF: Generally, we see growth potential all over the world. We see the greatest potential in the CEE region, including Russia, because of the market's growth generally and also because of the substitution of traditional products with our self inking range.
South America will remain an area with a strong potential for growth as will the Far East with India and the Maghreb countries. There are also European countries where we will be able to substitute traditional hand stamps.
OPI: Even sceptics agree that green products are here to stay, but I think a dip in interest is understandable this year - have you changed your approach to market?
EF: You have to consider 'green products' and environmental production with a long-term view, and should not view them as a marketing ploy or gimmick. In a difficult economical situation, environmental awareness may be driven back, but they are as important as last year despite the sales volumes being lower.
OPI: How important are good wholesaler/vendor relationships at this time?
EF: Good relationships are always important. The question is: what are the features of a good relationship? Most wholesalers are absolutely professional and expect vendors to be equally professional.
From our perspective, the products and the marketing concepts are the foundation, but you always have to be clear, fair and flexible, seeing the wholesaler as a partner to be treated with respect.
Working across a number of market sectors we always keep our ears to the ground. Stamp makers are very dedicated to their business and some of them are bubbling over with ideas and requests. We take these ideas very seriously and turn such 'problems' into opportunities. This is a core philosophy of our company.
OPI: Considering the EU's relatively strict regulations, how has COLOP optimised its production process to cause as little environmental impact as possible?
EF: We exceed the strict EU and nationally imposed obligations and are making a voluntary and above average contribution to this issue. Not because it is trendy - we started our environmental programme some years ago - but because in the long-term, environmentally friendly production is not more expensive.
We optimise our production starting with R&D where we design our products and production processes to minimise waste. We also restructure existing products and processes to maximise use of all resources.
We collect any plastic waste automatically, crush it and re-use it in our production process. Additionally the heat generated during the production process is recycled with areas of the production and warehousing sites heated using heat recovery. Our ecological orientation is also reflected in the ISO 14001/2004 certificate for environmental management.
All these measures lead to our 'Green Line', a product range where the workflow is certified by the ISO 14001 process. The products are made of more than 75 percent recycled materials.
OPI: How significant is the problem of counterfeit? How can it be combated?
EF: We are finding more and more copies of our products in several markets. Mostly of a bad quality.
We secure our developments with patents and any violation will be combated within international law, but in terms of new product development, sales concepts, e-business solutions and better quality, you must be a step ahead.
We convince our customers that we are more than just a stamp producer, a reliable, long-term partner who supports them in with concepts, programmes, e-solutions, etc. And a partner who takes the environment extremely seriously.
OPI: What are the challenges that the industry faces?
EF: Speed as everything will move faster and the information flow will increase dramatically. Customisation because - despite the benefits of mass production - the need for customisation will increase. Production and delivery times shrink. Ultimately product lifecycles will decrease.