Workplace360: Let’s set the scene – how did you get to this point?
Gordon Christiansen: My corporate career linked to office products began at Canon in the UK, where I held various sales and marketing roles. I then stepped outside the industry for a time and moved into the information sector, which was more tech-led.
After that, I bought into dealer London Graphic Centre and ran it for ten years before divesting my stake. I took a short break, mainly doing consultancy work, before joining Highlands a decade ago. I started out focusing solely on the UK, but for the past nine years, I’ve been involved on both sides of the Atlantic.
W360: Give us a bit of the historical background to Highlands.
GC: Highlands was founded in Atlanta, Georgia, in 1962 by Kevin O’Gara – the father of current CEO Bob O’Gara. It began as a classic regional rep group, selling office supplies to dealers at a time when a great deal of them were holding stock and buying directly from vendors as well as through wholesalers. Kevin possessed a real talent for it and built a strong business in the southeast, then expanded west to Texas and beyond.
Bob later took over the company and transformed it into a national operation, broadening the range into different product categories and online selling – especially through Amazon. About 12 years ago, the business spread into Europe.
W360: Some of our readers may not have much exposure to the US market and might not be overly familiar with what Americans used to call the manufacturers’ rep group model. Could you provide a bit of context?
GC: We still refer to it as a rep or manufacturers’ representative group. The concept dates back to the
late 1800s or early 1900s in the US, across many industries – not just OP. It came about mainly because the US is such a vast country geographically, and employing a direct salesforce across all 50 states – or even just the continental 48 – can be incredibly expensive and difficult to manage.
Hence, unless you were a sizeable business, it was – and still is – quite common for a rep group to be used. These are organisations that support local distributors and help sell the products. The model holds up today, although how it works varies according to the product categories it supports. For more commoditised products, having a digital competence to supplement field sales is key, whereas in contract furniture, for example, you need specialist reps supporting the longer sales cycle. Other sectors include contract cleaning or heavy engineering where specialist local knowledge is essential to the sales process.
W360: You’ve grown quite a bit beyond what we used to call the traditional OP industry.
GC: Definitely. When I joined Highlands and got my head around what it was – and what it could be – we continued to push forward by offering numerous product categories across multiple channels.
The workplace supplies channel remains significant in the US, the UK and Europe, but relying solely on OP is really a road to ruin. We’ve witnessed this playing out among manufacturers and distributors, and the rep groups supporting them. Diversifying the product portfolio is key – not just for growth but, first and foremost, for survival.
W360: What was Bob’s rationale for expanding into the UK and Europe?
GC: A mutual friend of Bob’s and mine introduced us a few years ago. At the time, he was high on drugs due to a bad back, so who knows what he was thinking…
W360: (Laughs) And I bet he still remembers nothing about it.
GC: Bob was exploring geographic expansion and was interested in whether American brands needed a launchpad into the UK and Europe. Like many US companies, he saw the UK as the natural first step – shared history, language, etc.
After investigation, he decided to acquire a company called Business Performance Group (BPG), which was run at the time by Luke Chapman. The idea was to see if Highlands could take the BPG model to the US and, in turn, introduce Highlands to the UK.
As it turned out, adding the BPG configuration was much more difficult and problematic than originally anticipated, so the plan was shelved. But we’ve since developed a slightly different approach for Highlands in the UK. It’s still grounded in the same ethos but with a model tailored to the local market that has enabled us to gain some real traction here as a rep group.
W360: We see you popping up at industry events. Tell us about the manpower behind you and the core services in the UK.
GC: We have a team of 16 in the UK, split across three distinct divisions. One helps manufacturers sell into mainland Europe – specifically targeting the head offices of major wholesalers and distributors across the region. Another group concentrates on the UK market, primarily the OP segment, although we’re also selling into the facilities and the industrial channels.
The balance of the team is dedicated to e-commerce and marketing. A major part of what we do is assisting brands on platforms like Amazon and Amazon Business, allowing us to work across a considerably broader range of product categories.
For instance, on Amazon, we’re selling items like gin and beer – products which are a bit trickier, although not impossible, to push through the workplace supplies sector due to licensing laws and other hurdles.
W360: How on earth do you get into beer and gin?
GC: (Laughs) How do you not?
W360: Silly question to ask an Australian.
GC: (Laughs) It all started through some activity we were doing – and still do – with soft drinks brand Cawston Press. You might be aware of its sister company, L.A Brewery. We built up a few connections and, as it turned out, got pretty good at it.
We’ve also developed a relationship with Danish beverage firm Bemakers, a merchant of record across Europe on Amazon. We facilitate its Amazon sales alongside the brands it represents, and the business has grown from there.
W360: How has your business model adapted to the evolving landscape, particularly in terms of the services you offer now?
GC: Good question. We’ve been very clear about our model from the start: our goal is to provide the best possible level of sales support for the brands we represent. All our employees are full-time and fully employed – we only use freelancers or contractors for specific projects.
Highlands also has solid processes in place, specifically around our CRM system, which we use to track activity, follow up on actions and generate opportunities.
We handle everything from helping brands get listed with wholesalers and distributors, be it VOW Wholesale, Exertis Supplies, Lyreco or RAJA Office/Viking, to collaborating with the merchants and buyers at the head office level to secure and augment those listings. Through our experience in online sales, we can also help with content, digital optimisation and marketing plans when needed.
Then we have people out on the road, joining forces with sales teams – whether it’s Lyreco, Viking or Banner, or working with independent dealers to try and convince them that the brand we’re selling is better than a competitor’s.
One area where we’ve done particularly well is introducing alternative product categories. It’s a topic I’ve been banging on about for years and we’ve delivered real results there, helping several brands tap into genuine growth prospects. Just look at the work we’ve carried out with Reckitt, for example.
W360: I know you were tight with Reckitt as it was bursting onto the scene, so you must be gratified with what has been achieved.
GC: Yes, absolutely, I am proud of the work Highlands has done with Reckitt because you can’t achieve these things in isolation. When a brand approaches us, especially if it’s not yet making significant inroads into the UK office channel, our role is to assist in navigating that space.
We help position it with wholesalers and leading distributors, connecting it to key decision-makers. I suppose one of the benefits of being in this industry for so long is that you get to know a lot of people, which allows us to make those crucial connections.
Supporting a brand in navigating the channel and then maximising those opportunities with the sales teams we have on the ground – it’s where the excitement is and something I’m genuinely proud of.
W360: At a few of the events I’ve attended recently, I’ve noticed you’ve brought along some new faces – like the team from sanitary waste disposal firm Sanni Bin and period products vendor Riley. Is this indicative of the direction Highlands is heading in?
GC: Core OP remains a vital part of what we do and we’re committed to supporting that, even though some categories are in decline.
But the reality is, we need to balance it with new product segments – ones which will not only drive Highlands’ growth but also that of the businesses we’re working alongside.
W360: To what extent are you finding that the larger resellers and wholesalers are embracing the brands you’re introducing, particularly those that might be new to them?
GC: I’d say they’re embracing them quite vigorously. If I look at the brands and channel partners we’re working with, there’s much greater acceptance now. The industry has really adopted diversity and recognises the potential for true partnerships and the sales growth possibilities derived from unique brands.
W360: What do you perceive as the key drivers of opportunity in terms of product categories, channels or brands?
GC: Speaking from experience – as someone who used to be a dealer – we sold a broad range of product categories that weren’t necessarily on the radar for many other dealers, as we had a large client base in London’s design and arts community.
I genuinely don’t think there’s a limit to what a dealer can sell. The real constraint is investment. Naturally, the easiest route is into adjacent categories. Cleaning and hygiene, for instance, are perfect complements: after all, in an office, you’re not just using pens and paper; you’re cleaning desks and stocking the breakroom with coffee and snacks.
These adjacencies are crucial and there’s no reason why, accompanied by the right supply chain, a dealer couldn’t branch out and start selling industrial products to the industrial marketplace. But to do so, they need to invest.
Independent dealers in the US that have successfully diversified did so by hiring staff with the right expertise to drive expansion. Just printing a catalogue saying, ‘We now sell nuts and bolts’ isn’t enough – if you don’t know how to sell them, you won’t. So yes, the key is investment.
W360: Any other key learnings from the US?
GC: It’s interesting. I do feel the US is ahead in certain product categories. Cleaning and hygiene, along with industrial, immediately spring to mind. But then I’d also argue the UK and Europe are ahead on PPE.
For me, the key takeaway is this: if you’re going to diversify your product or category range, commit to it. Don’t dabble because it will only cause frustration. If you can’t do it properly, simply don’t do it. Instead, do more of what you do really, really well.
Another point is that some technology platforms are marginally in front in the UK and Europe compared to the US. Much of this progress was driven by Paddy Donnelly and his company, ES Tech Group which, of course, was sold to ECI. But certainly, the UK and Europe have enjoyed greater flexibility in terms of online platforms, while the US is now playing catch-up. If independent dealers aren’t embracing e-commerce and technology as part of their future, it’s going to be far harder for them – plain and simple.
W360: Let’s talk a little about the UK specifically. You repeatedly tell me off for using the phrase ‘the industry,’ but what’s your view on the current state of play in the market?
GC: For my own sanity, I’m going to segment it. Concerning direct supply, if we start with the largest player, Lyreco, it’s a machine. A really well-run machine and the recent acquisitions it made in the UK are super smart and fit in with its model very nicely. I expect Lyreco to continue doing what it does best and keep morphing, evolving and succeeding.
RAJA Office has a bigger task on its hands. The challenge here is getting all the business units working in harmony. That said, it’s undoubtedly a large, capable organisation. It has smart people in leadership roles, so I think it’ll get it aligned. It has strong brands in its portfolio – Viking, for example, is a real powerhouse online.
The recent management buyout of evo Group by Andrew Gale is an intriguing move. I reckon it’ll allow for greater flexibility under his leadership. As for Banner and Complete – the group’s two direct sales operations – I don’t necessarily see them doubling in size in the next few years, but there’s definitely room for steady growth and notable performance.
W360: Evo Group certainly feels a lot more interesting these days…
GC: I agree – and I’m curious to see what the team elects to do with VOW. From what I’ve seen over the past few years, it has done a nice job diversifying not only the product categories it’s taken on board but also its downstream sales channels. VOW seems to have taken a page out of the Essendant [US wholesaler] playbook from years ago, and continuing on its current growth trajectory should hold it in good stead.
Looking at the dealer community, there are a bunch of undeniably talented entrepreneurs. Needless to say, some are more driven than others – some want to scale their companies, while others are perfectly content with running them as lifestyle ventures. But as long as strong suppliers like VOW, Exertis Supplies and CTS remain in the market, there’ll always be entrepreneurial people ready to build successful companies.
ACS Group is a perfect example. It’s a relative newcomer in the grand scheme of things, but it’s now an industry powerhouse thanks to the drive of those at the top. With the right supply chain behind it, companies like that will always thrive.
W360: What about the vendors?
GC: This is where it gets really interesting. There’s been a lot of chatter about oversupply in the market – and rightly so. Everybody sees the GfK data and the reports you publish. The usage of general OP is declining, and there’s not much we can do about it. You can’t go out and tell someone to use additional pens and paper – it’s just not going to happen.
Something has to give, and it seems inevitable we’ll see a shrinking pool of suppliers in this space. If you’ve studied economics and think about the classic bell curve, then the idea of being the ‘last man standing’ in a declining category can actually be a very good place to be. The volume will still be there, competition will diminish and, typically, margins will improve.
Now, when exactly we will hit that point, I couldn’t say as I’m not clever enough to predict that kind of timing, but it will happen. And yes, we’ll have fewer manufacturers in the workplace supplies sector in five to ten years.
W360: Are you talking in the traditional sense?
GC: Yes, I’m referring to traditional OP here.
W360: We’ve seen some M&A activity over the past few years. A lot of it in the UK has been fairly low-level or the larger deals – like Complete – have felt enforced rather than strategic. Is there more to come?
GC: Absolutely. We’ll increasingly see independent dealers merging. There will always be those seeking to retire or sell up or simply finding it tough to survive – and if the numbers work, other dealers would be inclined to absorb those businesses.
Whether we’ll witness another aggressive buy-and-build strategy like Richard Coulson’s with Complete, I don’t know. It seems unlikely, but the world’s a funny place. On the manufacturing side, notably in paper-based products, there continues to be a sizeable number of players in the market, and it just doesn’t feel like we’re going to need all of them forever. So, I can see increased consolidation here too. You only have to look at what Exacompta Clairefontaine has done, scooping up multiple brands into its portfolio.
W360: What’s your take on what’s happening in the current retail landscape?
GC: Inevitably, there will be room for specialist retailers in some way, shape or form. But when you look at how people buy office products for the home these days, most just head online – Amazon being the default for many. Yes, there’s been a real effort to try and set up relationships with the corporates to funnel it through to traditional suppliers and so forth, some of which have succeeded. But if you’re a parent buying pens, pencils and notepads for your kids, you’re just as likely to pop into Tesco or Sainsbury’s as a specialist retailer. Unless a specialist retailer has something particular to offer, eg Smiggle – then it will get harder and harder.
W360: A sad day, really, for someone my age who grew up with the highlight of their weekend being a trip to WH Smith to spend a gift card, poring through the books, calendars, etc.
GC: I agree. It is terribly sad. There will be more of this. Unless a retailer offers a genuine experience that gives people a reason to walk through the doors, it’s going to struggle. Retail isn’t dead. A huge chunk of the economy still comes from those visiting a physical shop and buying stuff. You talk about being a kid and visiting WH Smith with a voucher – let me throw this back to you: when was the last time you actually went into a WH Smith store?
W360: I honestly can’t remember.
GC: Exactly. Everybody laments the loss of these places, but not many of us supported them. If we had, they wouldn’t disappear.
W360: There’s a lot of talk about hybrid working and the idea that getting employees back to the office is the great panacea. Do you think it will really shift the needle for our industry?
GC: No, I don’t believe so. For a good deal of businesses, getting people back in five days a week is going to be incredibly tough. And let’s not forget, we’re mostly talking about professional, white-collar workers here – they only make up a small portion of the overall workforce.
I imagine we’ll settle into a rhythm where three days in the office is common, with some still doing five. Whatever shape it takes, hybrid working is here to stay. For every company insisting everyone’s back full-time, there are plenty of others saying: “We treat our staff like adults – they can choose when to come in.”
W360: One of the major megatrends, certainly in Europe, is sustainability. How much more important have these conversations become?
GC: It’s very palpable. These days, if you don’t have some talk track around sustainability, you run the risk of being ignored – especially if you’re a fighter brand.
W360: Is the dealer community doing enough to equip itself for sustainability-driven conversations?
GC: Generally speaking, yes. Some will get left behind, but that’s just the nature of the beast. From what I’m seeing, more and more dealers realise that if they’re not giving their customers a sustainability story – whether it’s about products, services, how they manage their fleet or treat their staff – they’re putting those relationships in danger.
W360: What do you expect the UK sector to look like over the next decade – when hopefully you and I have retired? I don’t know about you, but I’ll be cycling, hopefully somewhere warm.
GC: (Laughs) I might be on a tennis court somewhere, who knows? Ten years is a long way out, but I predict the broad structure shall remain, with a few large direct players like Lyreco and RAJA Office still in the mix.
Evo’s journey is one to watch. I dare say there’ll be enough volume in the market to keep the wholesale channel supporting independent dealers, though not supplying as many as today. In the same way, I suspect there’ll be fewer manufacturers of traditional OP. I believe dealers increasingly view themselves not as OP resellers but as managed business services providers. However, the whole supply chain must become slicker and more efficient.
As it has been for several years, it’s an immensely interesting time for the industry. Even when things get tough and in decline, opportunities nonetheless still exist. If there’s a desire and a capacity to invest, there remains plenty of mileage in what we do.
I look at the dealer community in the UK, across Europe, the US and even in Australia and I come back to the old line everyone quotes from Darwin: adapt or die. But it’s true. This sector’s been pretty good at adapting, and those businesses that do adapt will continue to thrive. The ones that don’t won’t.
W360: On that note, thanks Gordon.
