The competition on brand in stationery market

President of GuangBo Group Mr. WangLipin

Though many entrepreneurs look down on the stationery trade, the stationery trade has been the most perfect trade with the most rapid development in Chinese light industry. According to incomplete statistics, Chinese stationery market has the capacity of more than 100 billion RMB, and it increases by more than 10% annually in recent years. The economic development and increase of purchase power of corporations far accelerate the development of stationery trade. Many large foreign-funded companies and distributors pour into China because of splendid future of consumer market of stationery.

It took the stationery trade more than 20 years to change from the seller’s market of traditional planned economy to purchaser’s market of market economy. There were great changes in production and operation ideals. There were few of companies for stationery in the early days of the development, many products depending on import and the demand continually increasing. With the development of national economy, the stationery trade changed from simple consumption over the past years to all-round consumption now, and the demand to stationery of companies and individuals got rape more and more. From focusing on price and quality to brand, the stationery trade is lying in the stage of great change.

A few days ago, a large purchaser came to China to purchase notebooks used for Iraqi students that worth more than 16 million yuan. In a few large-scale companies of the country, GuangBo Group finally won the bid by comprehensive assessment conducted by the delegation of the purchaser. “The reason is”, the representative of delegation said with fluent Chinese: “the brand of “GuangBo”is the representative of Chinese stationery trade in US, and Americans very appreciate the albums and notebooks produced by the group. Moreover, it seems that only GuangBo Group has ability to produce high-quality products in such short time.” Besides, such large international purchasers as Disney, wal-mart and Carrefour incline to purchasing the products with well-known brands.

The direction of development of the stationery trade

A trade is born because of great profits and it must undergo beginning stage, competitive stage and rape stage. It marks the trade rape when the market competition is rape and the profits of the trade are as stable and much as other trades. This is the law of the development of a trade and the way of development of stationery trade.

What controls the development of stationery trade? The answer is consumers. Whether manufacturer, distributors or retailers must adjust their production and marketing strategies according to different demand of consumers in different period. If not, it is impossible of them to succeed. The demand of consumers changes continually the way of sales.

At the professional point, the stationery trade formed in the late 1980s and the early 1990s. GuangBo Group was born in 1992 for meeting the change and development of the age. Formerly, the production and sales of stationery were planned by the central government. That is the distributive department of general store distributed the stationery to the first-, second- and third- class culture station of county. The trade hardly develops under the system.

With the opening up and reform to the outside world deepening, many foreign-funded companies poured into middle and large cities in costal area and brought about many their practices of consumption on culture, which affected the demand and consumption of home companies and stimulating the changes of consumer structure. Some developed areas came the special shops for stationery such as in HaiDian district of BeiJing and ShenZhen in GuangDong province. This time, the trade starts new development again.

There were few of companies for stationery in the early days of the development, many products depending on import and the demand continually increasing. With the development of national economy, the stationery trade changed from simple consumption in the past years to all-round consumption now, and the demand to stationery of companies and individuals got rape more and more.

If the development of the trade is divided into the beginning stage, the competitive stage and the rape stage, now the stationery trade is lying in the late of competitive stage- that is in brand age. And the competition ways change from single price competition to brand competition in service, management and shopping environment. Facing the stationery with various brands, the consumers can take more and more choices, and the foreign competitors pouring into home market will make the competition increasing and cruel.