Why Stationery Distribution Is One Of The Profitable Business Opportunities
Charles Dickens once said, “There was something very comfortable in having plenty of stationery.” Even in today’s tech-savvy world, the tangible and tactile feeling of stationery still makes a powerful impact.
The stationery market is often considered the dark-horse of the business world. It is among the fastest-growing businesses and recession-proof. This is because stationery is something which is always needed in schools, colleges and offices and cannot be replaced easily, no matter how digital we go.
The Growing Stationery Market
With increased expenditure and focus on education, the number of new schools opening every year has increased considerably. All this has led to an increase in the school stationery segment, which is soaring high with profits. Further, the growing e-commerce industry in the country is also contributing to rising sales of stationery products. Office segment is the second-highest consumer of stationery products and is anticipated to register a healthy growth.
Apart from these, the stationery market is constantly coming up with an array of colourful items, which not only attracts the children but also adults. Many people tend to hoard exciting and beautiful stationery items even if they don’t actually need it; you can say that they ‘fetishise’ stunning stationery.
Thus, no matter the reason, the stationery industry isn’t ceasing to exist any time soon. In fact, it’s growing at a rate of 8 per cent per year. Starting a stationery distribution business can be highly lucrative for you considering the demand and high margin. Below are the following reasons why you should consider stationery distribution as a profitable business opportunity.
Varied Product Range
One of the best things about the stationery market is that it is highly segregated and has a variety of products. Stationery products are segregated into printing supplies, mailing supplies, marking devices, paper-based stationery products, filling products, party goods, writing & marking instruments and others. There are distributorship opportunities available in all these segments from various brands such as Classmate, Camlin, Camel etc. One can opt distribution opportunity for many products offered by the brand. For instance, Classmate sells notebooks, pens, art supplies etc. Thus, being a distributor you will be able to distribute many products, increasing your profitability.
The stationery business offers moderate profit margins, but the high demand balances it out. Brands give out a margin of approximately 30 per cent to 40per cent to the distributor. You would be able to give products probably with a margin of 25per cent to 35per cent to the end retailers. Your margin would basically be an average of 5per cent. However, the bulk and repetitive orders on stationery items make it lucrative. Another unique thing about the stationery distribution business is that the brands will have to employ sales personnel to get orders from stores for you, therefore, saving you from the effort and cost of marketing and garnering customers.