MRO Market Size and Growth Potential

According to the National Bureau of Statistics, China's MRO procurement market size reached 2.57 trillion yuan in 2020, with an annual growth rate of 15.7%. MRO procurement demand accounts for approximately 4-7% of industrial output value, indicating a vast and steadily growing market space. It is projected that the market size will exceed 3 trillion yuan by 2025.

Advantages and Challenges of Office Supplies Enterprises Transforming into MRO

Office supplies enterprises such as Delix Group and Comix Group (002301), leveraging their strong foundation in office supplies procurement, have begun to expand into the MRO sector. These enterprises' MRO businesses have developed rapidly, with some platforms' MRO volumes approaching 50% of their total business. The advantages of transforming into MRO lie in their existing customer base and service infrastructure, but they also face challenges in enhancing professionalism, building brands, and shedding the "office supplies" label.

Growth of MRO Business and Customer Needs

The impetus for office supplies enterprises to expand into MRO is to meet customer needs. MRO materials are diverse, frequently procured, and have low standardization levels, making traditional procurement models inefficient. Office supplies procurement platforms can provide more efficient solutions, helping customers address challenges such as difficult inventory control and high procurement costs. Additionally, the increasing penetration of digital procurement in central and state-owned enterprises presents growth opportunities for the MRO business.

Development of Professional Talent and Service Networks

To address the professional nature of MRO business, enterprises are enhancing the professionalization of their teams. For instance, Lingxian Weilai has established a team comprising professional product managers to better understand customers' specific needs. The construction of service networks is equally crucial, with Lingxian Weilai having over 1,000 branches nationwide to provide localized services and ensure efficient goods circulation.

Development of Private Brands and Profit Margins

As the industry becomes more digitalized and product prices become more transparent, MRO business profit margins may face pressure. Companies like Delix Group are enhancing their competitiveness by developing private brand products, such as Delix tools. Comix Group is also exploring the possibility of establishing MRO private brands to meet future market challenges.

Classification of Office Supplies:

Common Metal Items: File Folder, Display Book, Envelope, Expanding File, Document Folder, Album, Pencil Pouch, Handle Bag, Single Pocket Zipper Bag, Double Pockets Zipper Bag, Accessories

Common Plastic Items: Desk Organizer, Document Tray, Magazine Holder, Desk Set, Pen Holder, Letter Holder, Bookends, Business Card Holder, Clip Holder, Stationery Holder, Storage Trays, Storage Holders & Racks, Wastebasket, Umbrella Stand

Controlled Items: Business Cards, File Folders, Lever Arch Files, Document Racks, Calculators, Staplers, Notebooks, Meeting Minute Books, Envelopes, Pen Stands, Fountain Pens, Whiteboard Markers, Watercolor Markers, Glue Sticks, Adhesive Tapes, Label Papers, Correction Liquids, Correction Tapes, Archive Boxes, Archive Bags, Rubber Bands, Blades, Pushpins, Clip Holders, Stamp Pads (Ink), Measuring Tools, Cutting Tools, Floppy Disks, CD-Rs.

Specially Approved Items (Not Subject to Office Supplies Expense Assessment): Printed Materials (various promotional flyers, forms, document headers, etc.), Financial Ledgers and Vouchers, Color Ink Cartridges and Printing Papers for Apple Computers, USB Drives, etc.