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10 Questions

with Dirk Collin
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By Paul Voosen
Staff Writer, The Prague Post
August 8th, 2007 issue

COURTESY PHOTO
Office Depot VP Dirk Collin talks about the Papirius acquisition and emerging markets in Eastern Europe.
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THE COLLIN FILE

Job title: Executive vice president and managing director, Europe, Office Depot
Nationality: Belgian
Former positions: General manager, Northern Europe, StorageTek Corp; various executive positions with Xerox

On July 30, Office Depot, a large American office-supply company, announced it was rebranding the Czech firm Papirius and folding fold it into the company’s worldwide operations; Office Depot acquired Papirius last September. In town for the announcement was Dirk Collin, managing director of Office Depot’s European operations. Collin talks to The Prague Post about the future of paper and the company’s environmental aspirations.
➊ What led Office Depot to purchase Papirius last year?
We constantly look for ways to develop our business, and when we discuss potential countries for expansion, an important consideration is the strongest player in that market. Several options or scenarios are then possible. We can make an alliance, set up a joint venture, agree on a partnership or make an offer to acquire a company. We could also set up a complete green-field operation.
In the case of Papirius, we were interested in having strong representation in the Central European market. Papirius was active in the Czech Republic, Slovakia, Lithuania and Hungary. And they weren’t just a market leader —the owners were running the company with the same values we have at Office Depot. So we saw a well-run company in a market with growth potential.
➋ Why was the decision made to rename Papirius as Office Depot?
That fits our strategy to operate as one brand throughout the world. We want to give our customers the benefit of having a consistent and positive shopping experience in different locations. Papirius customers will still enjoy the services they’re used to, but will now also benefit from a wider range of products and services.
➌ What plans do you have for the Czech market?
The market will now operate exactly the same way as we operate in the UK, France or Spain. We bought Papirius for their strong presence in the contract sales market, in particular.
In Europe and the Middle East we operate with three business models, or channels. One is the contract business; the others are direct mail — catalog sales — and the third is retail. We believe we have a strong upside in developing our existing contract and mail-order business. We have no plans to open stores in the Czech Republic at this time. However, if we did, they would have the Office Depot design and layout.
➍ Do you see a lot of potential for expansion into emerging markets further east?
The emerging markets in Eastern Europe have great potential. Most important to me is that we have to be where our customers are located — where they want to shop. And our customers are definitely investing in Central and Eastern Europe. So we recently started a green-field operation in Poland and we have partnerships in many other countries in the region.
➎ What role do the former owners of Papirius have in the company?
The former owners, Jan Černý and Petr Sýkora, are continuing to run the company as directors. So the particular Czech flavor will continue to be there. Our local staff is very professional. They’re looking forward to joining our family of more than 50,000 associates.
➏ How would you characterize Office Depot’s expansion into Europe from North America?
Our stores are the most visible aspects of our business in North America, but in Europe and the Middle East, we only have stores in France, Hungary and Israel. In Europe, we focus on contract sales and mail order. Together, they generate more than $3 billion [61 billion Kč] per year.
➐ Are there office products of particular popularity in Europe compared to the United States, and vice versa?
We do offer a wide range of office products and solutions. As part of that, we take into account local tastes. For example, certain furniture styles and designs might differ per region and even per country. But we also have products and solutions that are similar across the globe, like technology, writing instruments, etc.
➑ Sustainable development has become a watchword recently in the European Union. Considering a large number of Office Depot’s products are disposable in nature, what is your company doing to counteract its environmental impact?
In Europe we have implemented several initiatives, including recycling and waste reduction, chain-of-custody certification and the sourcing of our forest products, along with ISO-14001 implementation.
Worldwide, we’re committed to improving the environmental performance of our suppliers, our customers and ourselves. We have three environmental aspirations: to buy green, by increasing our assortment of environmentally sound products; to be green, by increasing energy efficiency and using renewable energy; and to sell green, by releasing “Green Book” catalogs in six countries and tracking our green sales.
➒ It has often been projected by futurists that the computer would mean the end of paper and the rise of the digital office — and yet paper use has dramatically increased in recent years. Will this trend continue?
In the 1980s, it was a common belief that we’d move into the paperless office. Since then, I believe the growth in paper consumption per year has risen at a rate that’s 1.5 to two times our economic growth. In other words, there is a continued need for paper in the office.
The number of documents has dramatically increased with the use of computers. Paper has become a different medium. Paper now drives action, whereas e-mail or electronic documents are more for information sharing. With the enormous amount of information that’s available today, paper is essential for filtering this information and emphasizing what’s truly important.
➓ You previously worked for Xerox, a company whose history dates back some 100 years. At 20 years old, Office Depot is a bit of an upstart. Any differences in culture you’ve noticed?
That’s an interesting question. Both companies have a strong focus on the customer. Office Depot might be only 20 years old, but I notice we’re approaching the same annual revenue [as Xerox]. To me, both are strong in their own domain. Both have strong values and clear priorities.
Want your top manager to answer our 10 Questions? Send a message to Paul Voosen at pvoosen@praguepost.com


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