CBI MARKET SURVEY: THE STATIONERY, OFFICE AND SCHOOL SUPPLIES

MARKET IN ROMANIA

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Page 1 of 8
CBI MARKET SURVEY

The Stationery, office and school supplies market in
Romania

Publication date: December, 2009

Introduction
This CBI market survey gives exporters in developing countries information on some main
developments in the stationery, office and school supplies market in Romania. The information
is complementary to the information provided in the CBI market survey The Stationery, office
and school supplies market in the EU, which covers the EU in general. That survey also
contains an overview and explanation of the selected products dealt with, some general
remarks on the statistics used, as well as information on other available documents for this
sector. It can be downloaded from http://www.cbi.eu/marketinfo.

1 Market description: consumption and production

Consumption
The total consumption of stationery in 2007 in Romania amounted to 118 million at MSP
1
.
The Romanian market accounted for less than 0.7% of the total EU stationery consumption. Of
the countries surveyed, Romania is ranked 18th, below Hungary and the Czech Republic and
above Lithuania and Bulgaria. Germany, the UK, France and Italy are the largest European
consumers of stationery. The Romanian market for stationery is relatively stable and during
the past years has grown consistently. This growth is projected to continue until the end of the
decade. Total stationery consumption increased by 18.4% annually in the period 2004-2007.

In relative size, Romanian consumption of stationery in 2007 consisted of:
paper-based items (9.9%)
filing product (3.9%)
storage products (1%)
writing and drawing instruments (5.7%)
presentation and planning materials (N.A.)
office and desk accessories (10.6%)
office furniture (60.8%)
greeting cards (0.6%)
cases and satchels (7.4%)

Trends
General trends in EU stationery consumption are given in Chapter 1 Consumption of the CBI
market survey The stationery, office and school supplies market in the EU (2009). In Romania
in particular the main consumption trends are:
the single-sourcing trend is creating a market with strong competition between different
stationery players. All customers are looking for one supplier who can offer them a full
range of stationery.
The second tendency in Romania is the increase in office technology, with almost all offices
equipped with personal computers, printers, and the latest office equipment. These items
are not in the scope of this survey but they affect the consumption of other office supplies.
In Romania the service sector is a leading factor of the economy and a large employer,
which positively affects office supplies consumption.
Computerization, e-mail usage and web penetration are major factors reducing the demand
for standard paper-based, writing and drawing instruments. The main consumption of
those stationery items continues to be the school sector.

1
Values quoted at manufacturing selling prices or prices at which manufacturers sell their products to resellers or
directly to consumers.
CBI MARKET SURVEY: THE STATIONERY, OFFICE AND SCHOOL SUPPLIES
MARKET IN ROMANIA

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Page 2 of 8
Production
Estimated total production of Romanian stationery for 2007 was 125 million. In volume,
Romania produced 30 million primary units
2
. Romania accounted for less than 1% of the
stationery production of European countries, indicating it is one of the smaller producers
ranking 18
th
, above Lithuania and Bulgaria and below Ireland and Greece. Total stationery
production apparently increased by about 21.4% on average annually between 2003 and 2007
but this is partly due to lack of data in the Eurostat database, where there is full information
for only three product groups out of nine for the whole review period, namely paper-based
items, office and desk accessories and office furniture. Nevertheless, all three groups
experienced a considerable increase over the years, showing that this market has potential.
Romanian production of stationery, office and school supplies in 2007 consisted of paper-based
items (41.7%), office and desk accessories (19.2%), cases and satchels (1.3%), and office
furniture (37.8%). For filing products, storage products, writing and drawing instruments,
presentation and planning materials and greeting cards there were no available production
figures for 2007.

Trends
General trends in EU stationery production are given in Chapter 2 Production of the CBI
market survey The stationery, office and school supplies market in the EU (2009). Most
Romanian producers are focused on collecting a wide range of products and offering complete
service in the field by supplying the final consumer with all required stationery items. More and
more companies in the European Union are working with Eastern European producers,
including in Romania, since they offer lower-cost production facilities. In Romania, the
fluctuations in production figures are also due to the availability of figures in the last few years
that have not been incorporated in earlier years of the Eurostat database.

Opportunities and threats
Summarizing the major trends on the market, the following opportunities and threats for
exporters can be identified:
+ While many other European stationery markets are relatively stable and mature, Romania
is one of the countries where consumption is forecast to grow consistently in the coming
years. All product groups are expected to grow.
+ The tendency for end-users to single-source is considered as a big challenge for developing
country manufacturers, unless they are able to develop a wide range of low-cost products.
+ Instead of moving production facilities into Eastern Europe to avoid long transit times from
overseas, Romania especially, unlike other European countries, might be more willing to
move production into developing countries as they are facing a problem with the exchange
rate (the Euro against the Romanian Lei), so they might be searching for a more
convenient currency rate and lower exchange risk.
+ The increasing service sector is creating a bigger market for stationery and exporters of
office products could find an opportunity and demand of their products in the Romanian
market.
- Romania producers have seen a rise in their activity in printing and reproduction of
recorded media, mainly due to price decrease. DC producers would have to compete with
Romanian low-cost production.
- Stationery market prospects are less positive, due to the internet and e-mail penetration,
as well as from increased demand for computers and portables.

We refer to Chapter 7 Opportunity or threat? of the CBI market survey The stationery, office
and school supplies market in the EU (2009) for more information on opportunities and
threats.




2
Production volumes in the Eurostat database are given in primary units; import and export volumes are given in
tonnes.
CBI MARKET SURVEY: THE STATIONERY, OFFICE AND SCHOOL SUPPLIES
MARKET IN ROMANIA

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Page 3 of 8
2 Trade channels for market entry

Exports from developing countries pass through a series of intermediaries such as agents,
importers/wholesalers, buying groups and contract stationers, before they reach the end-user.
The demand for stationery can be separated into different user segments: professional users,
schools and universities, SoHo
3
users and private users. Traditionally, exports from developing
countries have transited through importers, who have then marketed the products to
wholesalers, end-users, or retailers. The disadvantages of working through a large number of
intermediaries include poor knowledge of market trends, inability to gain competitive
advantage by adapting the product to specific customer needs and most important - the
margin lost at each stage of the value chain. On the other hand, exporting on your own
generally requires more of the resources of your company than exporting through an agent or
importer/wholesaler.

Office product (OP) dealers and contract stationers have the second largest share of the
distribution structure in Romania, after high street retailers. OP dealers and contract stationers
will increase their market share, as the trend towards single-sourcing continues and works in
their favour. Organizations with international sourcing and sales capabilities could take a larger
share of the Romanian stationery market.

The end-users preference for having one supplier for all their stationery needs is a key
requirement in the current market situation in Romania. Based on the trend for supplying end-
users with all their office supplies from only from one company, the wholesalers, retailers,
importers and agents are fighting to have a wide assortment in their portfolio covering all
stationery consumption needs.

Office superstores will increase their market share, and smaller office product dealers and
retailers will lose market share as a consequence. A well-known office superstore Office1
(http://www.office1.ro/) entered the Romanian market in 2004, setting the example.

Websites of important players in Romania are:
o Herlitz Romania http://www.herlitzromania.ro/ - producer, part of Herlitz PBS,
Berlin
o Delmet Prod - http://www.delmet.ro/en/index.html - the biggest Romanian
producer of files, ring binders and clipboards.
o Office1 Superstore - http://www.office1.ro/
o METRO - http://www.metro.ro/
o Euro Pencils www.europencils.com - Pencils manufacturer (Sibiu, Romania)
o Flaro www.flaro.com manufacturer of stationery items, haberdashery and
household products, and components for the light-industry.
o Arexim - http://www.arexim.ro/ - trading of office equipment and supplies

We refer to Chapter 3 Trade channels for market entry of the CBI market survey Stationery,
office and school supplies market in the EU (2009) for more information on trade channels for
market entry.

In earlier days, in the so-called product driven economy the manufacturer would calculate his
production cost, add the desired profit margin and quote the resulting price to his potential
buyers (the costplus method). However, nowadays in the so-called market driven
economy manufacturers should realize that they and their (potential) buyers/trading partners
do not determine the price levels on their own. The price levels in the entire supply chain are
for the major part determined by the end-users and the market: How much are they willing
to pay for the product?.


3
Soho: small office and home office
CBI MARKET SURVEY: THE STATIONERY, OFFICE AND SCHOOL SUPPLIES
MARKET IN ROMANIA

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Page 4 of 8
Due to the fact that the price which the end-user is willing to pay is determinant, it is of
utmost importance for all players in the chain to know the end-user prices* (please see
paragraph *Knowledge of end-user prices). The end-user prices are often called Retail Selling
Prices (RSP) as that price is what all players in the entire chain will have to divide among
themselves for the work they do: retailing, marketing, distribution, wholesaling, importing,
transportation. They also have to bear in mind that sufficient money should be left to cover
production costs plus, of course, the manufacturers profit. After the intermediaries (players
standing between end-user and manufacturer) average margins are determined as a
percentage of the RSP, it is possible to calculate the estimated FOB selling price. This will
enable exporters to estimate their possible profit margin, knowing the cost of inland
transportation, loading and manufacturing. The table below provides an example of how you
can do the estimation calculation for the traditional route of a product to the end user.

Overview of margins in Romania
Retail Selling Price inclusive of V.A.T. (19%) 2.45
V.A.T. 19% 0.39
Retail Selling Price exclusive of V.A.T. 2.06
Margin retailer (average) 38% over 2.06 0.78
Purchase price retailer 1.28
Margin importing wholesaler 28% over 2.06 0.58
Purchase price importing wholesaler in house 0.70 120%
Import & transportation cost 20% over FOB value 0.12 20%
Estimated backward calculated feasible FOB price 0.58 100%

For a further explanation of terms such as FOB we refer to the Incoterms 2000 International
commercial terms of delivery
http://www.arcelorlogistics.com/Refonte/images/Incoterms/Tableau-Incoterms-2000-Angl.gif

The margins which are indicated for the different players in the chain are averages. They may
vary per product, product group or negotiating power of the players and could be subject to
change. For example, margins for the product group greeting cards could be higher due to
the seasonal character of this product they are mainly used in the Christmas period so there
is a retail margin risk in holding stock. The calculated 20% for import & transportation costs
are averages too. Please be aware that the percentages given in this sample calculation might
be subject to great variation for different reasons such as type and availability of product,
channel of distribution, market location, duties in different countries etc.

If your products are subject to import (customs) duties you have to add these duties in the
above calculation as in this example no import duty costs are included. Normally the tariff for
products under code groups 9608, 9609 such as ball point pens, pencils, markers etc. is
between 2-4% for third country origin and for products under code groups 4820 such as
cardboard folders, binders etc. is 0%. Information on duties for specific products can be found
at http://ec.europa.eu/taxation_customs/dds/cgi-bin/tarchap?Lang=EN it is a direct link to a
particular item where an exporter can find the exact import duty in the EU for it, while the link
in Chapter 5 Market access requirements gives general information for tariffs and quotas.

Referring to the table above, it is important to realize that the example multiplier (4.3) which
gives an easy calculation method backwards from the RSP to the estimated FOB price, may
vary as well. In general, the multiplier can range between 4 and 6, but sometimes even rise to
8 or 10.

*Knowledge of end-user prices
Desk (mainly internet) research as well as field research (shopping in the market place and
visiting trade fairs) are of the utmost importance in tracing up to date RSPs. CBIs Export
Coaching Programs usually facilitate these activities to their participating companies at the
beginning of the programs during a seminar in Holland, which is often combined with trade fair
and shop visits. Please note that RSPs for the same or similar products may vary in the
different EU countries. In the EU office and school supplies industry for example the RSPs in
4.3
CBI MARKET SURVEY: THE STATIONERY, OFFICE AND SCHOOL SUPPLIES
MARKET IN ROMANIA

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Page 5 of 8
the UK and Scandinavia are in general higher than in the other European countries. The
Netherlands for example is in general a market where RSP levels may be considered to be at
quite keen levels.

Websites where exporters can search for prospects in Romania are:
o MPA International - http://www.mpainternational.com/ - A global consultancy
specializing in marketing research and analysis in the office products industry
o Office Products International Magazine - http://www.opi.net/index.asp?
o Office Supplies 1 - http://www.officesupplies1.com/ - information for stationery
suppliers abroad; you may search by specific country.

3 Trade: imports and exports

Imports
Total imports into Romania amounted to 205 million in value and 73 thousand tonnes in
volume in 2008. Romanian imports accounted for 1.7% of total imports into EU countries, and
it is ranked 14
th
among all EU countries, just after Ireland and Denmark and followed by
Portugal and Greece. Germany (15.1%) and the UK (13.8%) are the largest importers among
the 27 EU countries. Total imports into Romania have grown over the last five years by about
74% in total. In 2004, Romania imports were worth 118 million, and in 2006 164 million.

Imports from Intra-EU countries have increased from 102 million in 2004, to 171 million in
2008. Extra-EU (excl. DC) imports increased, from 3.5 million in 2004 to 5 million in 2008.
Finally, imports from developing countries increased from 12 million in 2004, to 30 million
in 2008, an increase of about 24.6% annually. Imports from developing countries accounted
for 14.4% of total imports. The most important supplying countries were China (6.9%), Turkey
(5%) and Argentina (0.5%).

In relative size, the Romanian imports of stationery, office and school supplies in 2008
consisted of paper-based items (29.3%), filing products (3.1%), storage products (0.8%),
writing and drawing instruments (13.4%), presentation and planning materials (0.6%), office
and desk accessories (31.6%), greeting cards (1.2%), cases and satchels (2.5%), and office
furniture (17.4%).

Romanian imports of stationery products have increased between 2004 and 2008 at different
rates, with variations in the demand for imports from developing countries between the
product groups:
paper-based items increased by 20.7% (DC share 10.2%)
filing products increased by 70.7% (DC share 16.6%)
storage products increased by 192.6% (DC share 13.5%)
writing and drawing instruments increased by 115.3% (DC share 17.9%)
presentation and planning materials increased by 155.8% (DC share 19%)
office and desk accessories increased by 71.5% (DC share 14%)
greeting cards increased by 907.2% (DC share 28.1%)
cases and satchels increased by 294.1% (DC share 43.3%)
office furniture increased by 220.3% (DC share 14%)

Exports
In 2008, Romania exported stationery, office and school supplies worth 35 million in value
and 10 thousand tonnes in volume. Romanian exports have increased in value during the
period 2004-2008, from 22.5 million, a 55.7% increase. Export volumes have increased from
8 thousand tonnes in 2004 to 10 thousand tonnes in 2008. By comparing the consumption,
production, import and export of the stationery, office and school supplies market in Romania,
one can conclude that re-exports of the stationery, office and school supplies might play a role
in Romanian imports. Thus, a part of the imported goods, entering the country, might be
destined for another market. In 2008, Romania accounted for less than 1% of total European
exports.
CBI MARKET SURVEY: THE STATIONERY, OFFICE AND SCHOOL SUPPLIES
MARKET IN ROMANIA

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Page 6 of 8
Opportunities and threats
+ In general, the share of imports coming from developing countries is relatively high in
Romania (15%).
+ This market is still developing and, compared to other EU countries, the Romanian
stationery market is far from mature and static.

More information on opportunities and threats can be found in Chapter 7 Opportunity or
threat? in the CBI market survey The stationery, office and school supplies market in the EU
(2009).

Useful sources
EU Expanding Exports Helpdesk - http://exporthelp.europa.eu/index_en.html
Eurostat official statistical office of the EU
http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/
Understanding eurostat: Quick guide to easy comext
http://epp.eurostat.ec.europa.eu/newxtweb/assets/User_guide_Easy_Comext_20090513.p
df

4 Price developments

Price is an important selling factor for all markets but it must always be considered along with
the quality of the product. In the lower segments of the stationery market, retailers have little
room to manipulate prices because competition is very fierce and margins are driven by the
rivals and market demand.

Table 4.1 Developments in import prices per product group in the period 2004 -
2008, % change
4

Source: Eurostat (2009)

The table above shows the changes in unit value of product groups (e.g. euros per ton) in the
period 2004-2008. The percentages give only a general indication og the import price
fluctuations. A decrease in the import price might show for example that the price for this
product is lower or that the imported products (for the same HS code) have a lower quality. It
is also important to mention that the price changes are calculated from the Eurostat database
where products are listed under HS codes which can contain just a couple of items or a long
list of products.

In Romania, the developments and trends in import prices shows price increases in most of the
product groups, with only paper-based items, storage products and office and desk accessories
registering price decreases.

We refer to Chapter 5 Price developments of the CBI market survey The stationery, office
and school supplies market in the EU (2009) which contains additional information on prices.

For up-to-date information about prices, below some useful techniques for finding relevant
information on prices are given:

4
The percentages in the table above merely give an indication of price changes. The percentages shown are
cumulative for the period 2004 2008.

Paper-
based
items

Filing
products
Storage
products
Writing
and
drawing
instrum.

Presentation
and
planning
materials
Office and
desk
accessories

Greeting
cards


Cases
and
Satchels

Office
furniture


-24.5% 5.8% -7.7% 26.2% 2.3% -22.4% 48.4% 140.7% 61.5%
CBI MARKET SURVEY: THE STATIONERY, OFFICE AND SCHOOL SUPPLIES
MARKET IN ROMANIA

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Page 7 of 8
In general, a price search should be made taking information from trade journals,
exhibitions, competitors, potential and existing customers and from exporters in your own
country who sell products in the same market
Other sources of price information are the local producers and suppliers. Below there are
some examples of the most important players in the Romanian region:
o Herlitz Romania http://www.herlitzromania.ro/ - producer, part of Herlitz PBS,
Berlin
o Delmet Prod - http://www.delmet.ro/en/index.html - the biggest Romanian
producer of files, ring binders and clipboards.
o Office1 Superstore - http://www.office1.ro/
o Euro Pencils www.europencils.com - Pencils manufacturer (Sibiu, Romania)

5 Market access requirements

As a manufacturer in a developing country preparing to access Romania, you should be aware
of the market access requirements of your trading partners and the Romanian government.
For information on legislative and non-legislative requirements, go to Search CBI database at
http://www.cbi.eu/marketinfo, select stationery, office and school supplies and Romania in the
category search, click on the search button and click on market access requirements.

Detailed information on packaging can be found at the website of ITC on export packaging:
http://www.intracen.org/ep/packaging/packit.htm

The VAT rate in Romania is 19%. Information on tariffs and quotas can be found at
http://ec.europa.eu/taxation_customs/customs/customs_duties/tariff_aspects/quotas/

6 Doing business

Information on doing business in Romania, such as approaching potential business partners,
building up a relationship, drawing up an offer, handling the contract (methods of payment,
and terms of delivery) and cultural differences can be found in CBIs export manuals Export
Planner, Your image builder and Exporting to the EU. These can be downloaded from
http://www.cbi.eu/marketinfo - go to search publications.

For more information on doing business in Romania, visit the following websites:
TradeRom - Romanian trade promotion centre
http://www.traderom.ro
Kwintessential - Romanian business culture
http://www.kwintessential.co.uk/resources/global-etiquette/romania.html
Biztradeshows - Trade shows in Romania
http://www.biztradeshows.com/romania/bucharest/
Eventseye - Romanian Exhibitions, Conferences and Trade Shows
http://www.eventseye.com/fairs/event_l1201.html
Exhibition calendar - international trade shows information by countries
http://www.expoua.com/Exhibition/lang/en/
Planet Business - Other sites for finding business partners
http://www.planetbusiness.com/country/439.htm
Oanda information on the Romanian currency exchange rates with the euro
http://www.oanda.com
OPI Office product magazine
Content: Leading magazine for office supplies industry
Frequency: Published monthly with daily updates on line
Contacts: Internet: http://www.opi.net/
Channel info magazine
Content: Information for dealers and resellers of all products and services for the office
environment
Frequency: Daily updates on line
CBI MARKET SURVEY: THE STATIONERY, OFFICE AND SCHOOL SUPPLIES
MARKET IN ROMANIA

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

Page 8 of 8
Contacts: Internet: http://www.channelinfo.net/
International Stationery Guide
Content: Leading sourcing guide for the stationery and office products industry
Frequency: Published three times a year and daily updates on line
Contacts: Internet: http://www.is-guide.com/
List of Romanian Trade Associations
http://www.eepcindia.org/trade-association-detail.asp?ccode=143
Association of Producers and Importers in the Publicity Industry APIIP
E-mail: Mailto:office@immromania.ro
Romanian furniture manufacturers association
http://www.apmr.org/
National Association of Exporters and Importers of Romania ANEIR
http://www.aneir-cpce.ro/







This survey was compiled for CBI by DCT B.V. in collaboration with Ms. Yolanda Netto

Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer