Released on = April 16, 2007, 5:00 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = In 2004, the UK stationery market was worth £2.18bn at
manufacturers\' selling prices (msp) and Key Note estimates that, in 2005, the value
of the market decreased by 0.7% to £2.16bn at msp.

Press Release Body = Stationery Personal & Office Market Report 2006

In 2004, the UK stationery market was worth £2.18bn at manufacturers\' selling prices
(msp) and Key Note estimates that, in 2005, the value of the market decreased by
0.7% to £2.16bn at msp.

This Key Note Market Report examines the UK market for personal and office
stationery, which covers products for office, home and educational use, but excludes
greetings cards and calendars. Stationery includes products made principally from
paper and board, as well as other stationery items, such as writing instruments, and
office and school supplies made of plastic.

Between 2001 and 2005, the UK economy has continued to show growth above the level
of inflation. Unemployment has remained below one million and the size of the
workforce has grown by around 3%. This background has been positive for company
investment and activity, and has helped to maintain the market for office
stationery. The volume of direct mail continued to grow annually between 2001 and
2003 but, in 2004, the volume dropped by 0.4%. In addition, the volume dropped by
5.3% in 2005.

Stationery manufacturers\' costs, including the costs of raw materials, wages and
transport fuel, have all risen between 2001 and 2005. Particularly important in 2005
was the rise in gas prices, which affected the paper mills and the paper converters
that depend on the mills. Manufacturers in most stationery sectors were forced to
pass on some increase in costs in 2004 and 2005, but the price rises have been very
modest so far. In the writing instruments sector, manufacturers\' prices in 2005
remained below their 2001 level. This downward pressure on manufacturers\' prices is
coming from import competition and from the power of the office products superstores
and other large distributors. Customers have become cost-conscious and own-label
products have posed a threat to manufacturers\' brands.

Although overall import penetration of the stationery market has remained fairly
stable, at around 37%, by value between 2002 and 2005, there has been growth in
imports of relatively cheap stationery from China. By 2005, China and Hong Kong
between them led exports to the UK of albums, notebooks, book covers, boxed
stationery assortments, plastic items for schools and offices, pens and pencils, and
small metal products, such as paper clips.

Two of the most important corporate changes in 2005 concerned DS Smith PLC, which
decided to pull out of stationery manufacturing but continue to strengthen its
involvement in the wholesale of stationery and office products. It sold the leading
UK manufacturer of paper stationery, John Dickinson Stationery Ltd, to Groupe
Hamelin of France, but acquired the leading office products wholesaler in the
Benelux region, Timmermans.

2006 is expected to be a difficult year for the stationery market. Key Note
forecasts that the market will remain fairly flat in both value and volume terms to
2010, with overall growth of 10.3% at current prices over the next 5 years.

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