In despite of a harsh market environment, the Swedish forest company Holmen still invests in product development of its paper brands. Recent developments in order to achieve a more cost-effective product with better printing results have also been quite successful.
- Our competitors are now following us, says Jonas Lindell, communication manager at Holmen Paper.
“Whiter than white”, “sturdy and matte”, “smother than smooth”, “silkier than silk”. When Holmen Paper promotes its new brands on a commercial video it focuses obviously on its competitive edge, like any product developer. Why shouldn’t it? But since the decline of almost all publishing paper is so well-known by now, since it’s so notoriously known that paper based products are losing ground when the Internet is gaining importance, it seems odd to even read anything positive or “new” about the use of paper, as if publishing paper equals old traditions, and all drivers for product development of publishing paper have disappeared.
New strategy
This is of course far from the truth. It’s worth mentioning that Holmen Paper is still the biggest business area within the group, and the company has recently decided to focus more aggressively on sales and marketing with a new leadership trio: CEO Nils Ringborg, executive vice president Juha Paulin, and sales and marketing director Karolina Svensson, of which the new strategy forward will be “challenging the market by providing the greatest customer benefit.”
Pros and cons
Of course, Holmen Paper also emphasizes the pros and cons of paper comparing to the internet when promoting its new products. Paper has been shown to encompass some new exciting advantages over the internet. Holmen Paper stresses the fact that you cannot be tracked by what you read on paper since paper doesn’t contain cookies like electronic devices. Growing concerns about personal integrity on the Internet might benefit the paper business. Holmen Paper is also keen to point out that the breakthrough of the e-book seems to have fizzled out, especially in Europe.
- The e-book has been very successful in the US, but now it has flattened out, says Tommy Wiksand, sales and development director at Holmen Paper.
And book paper is big business for Holmen Paper. Holmen Paper operates the largest paper machine for wood containing book paper in the world at its Hallsta mill in Sweden.
Push marketing activities have also proven to be more efficient on paper than on the Internet.
- Push marketing is very strong on paper, says Tommy Wiksand.
Publishing paper trends
So what are the new publishing paper trends? According to sales figures from Holmen Paper, glossy, coated paper grades are less attractive today. In 2013, deliveries of coated magazine paper in Europe fell by 7 per cent and SC paper fell by 4 per cent. At the same time, deliveries of uncoated magazine paper increased by 7 per cent. One key factor explaining this trend is that magazine publishers are faced with a tougher market situation and subsequently focus on more cost-efficient options for magazines, direct mail and catalogues. Lower grammages enable uncoated paper grades to offer more print surface for the money, saving money on distribution.
Uncoated, wood-containing printing papers also have a more rough trait, a greater “paper feel”, that even attracts publishing companies of stylish, luxury magazines.
The haptic factor
Holmen Paper’s paper brands are on fresh fibre, which is possible to bleach and also gives a more bulky feeling. Print quality is also enhanced on the new magazine paper grades, and improved print quality is more or less a prerequisite in the face of continuous improvements of the readability on computer screens.
- High definition on print is needed, stresses Tommy Wiksand.
According to Tommy, the most important factor when developing new magazine paper grades is the haptic factor, i.e. technology that interfaces with the user through the sense of touch.
- The haptic factor is how the paper looks, sounds and feels, explains Tommy Wiksand.
Market studies
The company continuously conducts market studies to grasp new market demands.
- We always try to understand what the next step will be. You cannot stand still, says Tommy.
Less than a year ago, the company released its latest paper brand, Holmen Trnd.
- Holmen Trnd is a really bulky sheet, high bright and with a very nice feeling.
Even if the market for book paper and uncoated, wood-containing paper grades might have been quite successful, the future for newsprint looks more sombre. The decline for newsprint shows no sign to level off.
- Newsprint will become a more and more local business. The fact that newsprint is mostly produced of recycled fibre is quite natural in this context, since it’s so local, says Tommy Wiksand.
