FMCG Sector














Paper Products

Paper Products

Some of the paper products are sheet paper, paper boxes, tissues, paper bags, stationery,
envelopes, and printed-paper products such as books, periodicals, and newspapers. Specialty papers like sandpaper, blueprint paper, carbon paper are not a part of paper products industry.

The stationery category includes greeting cards, printing and writing papers, school and office papers, etc. The toiletry products include paper towels, tissue paper, and bath tissue.
Threats
Internet threatens the paper products industry, as it has become the new market channel (such as,) for many companies. Email marketing campaigns and online banner ads have reduced the demand for traditional print advertising. Print advertising now includes newspaper and magazine
production only. Newsletters, articles, books are now available online and that that has reduced the use of print services. Apart from Internet, cell phones can also be used to access news, and other information, which poses another threat to the paper products industry.

Outlook

The challenges faced by paper products industry are:
. Increase in production and distribution expenses i.e. increase in transportation cost.
. Reduction in demand i.e. competition from other media

These factors are likely to continue in future and will soon draw away investors, customers, and advertising money from the paper products industry.

Mergers and Acquisitions
Competition from electronic media has affected the share value of many publishing companies. With their slashed share prices, these publishing companies have now become the target of private equity buyers.