expanding role of electronic storage media, The

Office World News, Nov 2002 by Lyle, Kit

Office supply dealers may wish to consider placing more attention on the tremendous opportunities in the media storage and media labels product categories. In a recent study prepared for the School, Home & Office Products Association (SHOPA) by Acclaro Growth Partners revealed rapid growth and tremendous opportunities for in- store marketing and merchandising of products surrounding new media. The single most significant trend affecting the computer accessories market in 2002 is the rapid growth of digital media. DVDs, CD- Rs and CD- RWs are being created, copied, and converted. These prized collections of audio, video and data are in need of protection, storage and mobility products. The expanded role of electronic media has facilitated creation of new products that office supply dealers should recognize. This brief article will shed light on products that surround the new electronic media phenomenon, offer insights on the size and growth of the markets and discuss some of the trends and drivers associated with these products.

The overall computer accessories market is currently growing at approximately nine percent to eleven percent per year. Over the past ten years, computer accessories products growth has increased five to ten percent per year in the early 1990s, to approximately ten to twelve percent per year in the late 1990s. Factors affecting market growth over the past decade have included the surge (and decline) of ergonomic accessories; technological developments; and, now, the growth of new media. Growth in media storage in 2002 is expected to be approximately seventeen percent in 2002 and Media Label Kits growth may be as rapid as one hundred percent (Acclaro projects twenty-five percent+ growth for 2002).

A NEW STORAGE PHENOMENON

Computer media storage is highly portable and is usable while one is away from a computer. Portable electronic media are nearly impossible to separate out from audio, video, game or photo media. Digital media holds much more information and not just data, but personal interest material such as music and videos. People have a stronger motivation to protect and transport this type of media and there has been rapid growth in demand for CD- R and CDRW, and other electronic storage media.

According to SHOPA's report, the retail media storage market will exceed $185 billion in 2002. The protection of electronic storage media is essential to maintaining the demand for this market. Compact discs are more susceptible to damage than floppy discs. With the unique scratch qualities of DVDs and CDs (data on these discs is especially vulnerable to scratches), the protective attributes of media storage have become a significant consideration. Products include transports, protectors and storage devices for CDs, DVDs, 3.5-inch diskettes, CD binder sheets, jewel cases, CD wallets and albums. Innovations include zipoff pouches and sections, media player pouches with detachable shoulder straps and waist belt loops, headphone clips, detachable cell phone pouches, side pockets, zippered accessories pockets, key clips, haul loops, padded backs, combination media storage and drink coolers. There has also been explosive growth for case- less storage such as binder sheets and sale-sleeve products.

The market is attractive because of its rapid growth, potentially large market size, insatiable need for innovation and design creativity, and related strong profit potential.

GETTING LUCKY WITH LABELS

With the sudden surge in interest in recordable media, comes the related interest in creat- ing labels (or these musical, video, photographic, and data treasures. While consumers may be content scribbling a label on a floppy with a permanent market, many seem to be much more concerned about the appearance and professionalism of labels for digital media. Media labels arc the fastest growing segment in the computer accessories industry and, according to SHOPA, media labels will be a $135 billion market by the end of 2002.

While this market is smaller and will remain smaller than the media storage market, it offers many of the same opportunities and compelling reasons for dealers to pay close attention to it.

MAKING YOUR MARKETING MARK

Knowing who to market your products to and how to market these products can have a huge impact on sales.

Take advantage of the Small Office Home Office (SOHO) market. The growth of the SOHO market is no surprising, sudden development. However, the recent shifts in products that are specifically designed for home offices or for women who are small business owners are new. Women consumers have become a major influence on the industry, especially in SOHO environments. Women run approximately thirty- four percent of small businesses, and have found forty percent of new SOHO businesses. Recordable media are important for small offices, which often do not have elaborate networks or professional storage media and rely on their newfound ability to burn CDs for data protection, backups and storage.