Secure storage continues cycle of growth - Office Supplies Update

DSN Retailing Today, August 18, 2003 by Mike Troy

Favorable trends in the market for secure storage products, such as fire- and water-resistant safes, continue to look good even though the category has experienced several years of strong growth.

Expectations of continued growth are due to increased consumer concerns over the security of personal information, along with the need of small and home office users to protect information vital to the ongoing operation of their businesses.

According to Bill Assimon, vp of customer and consumer marketing with the Sentry Group, the category has grown more than 15% the past three years and three factors are driving the growth.

"Consumers are looking for protection, security and organization," Assimon said.

When the category was relatively young, consumers were simply looking for a fire- and water-safe box to protect such things as passports, car titles and financial records. However, as the category has evolved, demand arose for more sophisticated products that are larger and offer more benefits. That's partly because consumers who early on may have bought an entry-level model, such as Sentry's model 1100--which Assimon said is the best-selling model in the world--have accumulated more important documents they want to keep secure. In addition, concerns over identity theft and the loss of privacy have created an environment where people are more protective of their personal information. That is the same force driving sales of paper shredders. Stronger demand is also being fueled by small business owners who are increasingly cognizant of the fact that the survival of their business depends on secure storage of important documents. All are trends that are expected to remain in place for years to come.

"I don't see people backing off the personal security issue, and the protection needs are going to continue to be there," Assimon said.

Those trends have also influenced the design of products and the price points. Instead of just a big box, some of the best-selling safe models are larger models costing several hundred dollars that offer consumers greater interior organization options such as adjustable shelves and door pockets.

Although Sentry Group is regarded as the category leader, the growth has attracted competitors such as World Office Products, which recently acquired the licensing rights to the Wells Fargo name and plans to introduce a line of 40 to 50 home and office security products next year. The Wells Fargo brand will replace the company's existing product line marketed under the Remington brand.

According to World Office Products vp Matthew Marlotte, "Our company recognized an opportunity in the marketplace for quality, do-it-yourself security products targeting the individual consumer and small business owner. Personal and professional security has now become such an important part of our everyday lives, that we felt it important to broaden our assortment of security- and safety-related products."

World Office Products forecasts the $2 billion category will grow by 20% in coming years. Its new line will be distributed in North America and will include safes and other security products, such as money counters, security cameras, monitors, door locks and pad locks.

"We are excited to be associated with such a famous and trusted name," said David Moss, president of World Office Products. "Wells Fargo is the leader in security and protection, and our products will exemplify the historic quality of the name."