BOOM. Recycling. The oops moments the Saw blade effect. soars. make your decisions. investment. Trash is treasure. sustainable



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4.2012 A maga zine from sca on trends, markets and business The oops moments the Saw blade effect Hormones sustainable make your decisions investment soars Trash is treasure Recycling BOOM

Shape is a magazine from SCA, primarily geared toward customers, shareholders and analysts, but also for journalists, opinion leaders and others interested in SCA s business and development. Shape is published four times a year. The next issue is due in March 2013. Publisher Joséphine Edwall-Björklund Managing Editor Marita Sander Editorial Anna Gullers, Ylva Carlsson, Inger Finell Appelberg Design Markus Ljungblom, Kristin Päeva Appelberg Printer Sörmlands Grafiska AB, Katrineholm Address SCA, Corporate Communications, Box 200, 101 23 Stockholm, Sweden. Telephone +46 8 7885100 Fax +46 8 6788130 SCA Shape is published in Swedish, English, Spanish, German, French, Dutch and Italian. The contents are printed on GraphoCote 90 grams from SCA. Reproduction only by permission of SCA Corporate Communications. The opinions expressed herein are those of the authors or persons interviewed and do not necessarily refl ect the views of the editors or SCA. You can subscribe to SCA Shape or read it as a pdf at www.sca.com. Address changes can done at www.sca.com/subscribe or by e-mailing sophie.brauner@sca.com CURIOSITY MADE her leave the job at one of Sweden s leading newspapers and move to Ireland. She brought her experience as a daily news reporter to Dublin, but did soon find herself involved in completely new fields as well, like working for the EU and travelling the world with a voluntary organisation. What was planned to be a short excursion to discover the green island nearly became a permanent move, but nine years and three children later she moved to Amsterdam where she continued to cure her curiosity by exploring the Dutch life. Contributor SCA S SOCIAL MEDIA SITES Youtube.com/ SCAeveryday shows commercials and videos from SCA s press conferences, presentations and interviews with executives and employees. Susanna Lindgren CURING CURIOSITY WITH TRAVELS News coverage has over the years become feature articles and the working field has gradually got more technical. The focus has always remained the person behind the discovery, the research or the construction. Since moving back to Sweden she runs her own freelance business. When not travelling she finds that walking the dog on the sea shore is the best way to clear the thoughts, along with renovating the old summerhouse and restoring flee market furniture bargains. Slideshare.com/ SCAeveryday is for investors and analysts, who can download presentations from quarterly reports and annual general meetings. 4.2012 A MAGAZINE FROM SCA ON TRENDS, MARKETS AND BUSINESS SUSTAINABLE INVESTMENT SOARS The oops moments THE SAW BLADE EFFECT HORMONES make your decisions Trash is treasure RECYCLING BOOM Cover photo: Staudinger+Franke Facebook.com/SCA is intended to attract talent, engage users and provide information in a way that complements sca.com. Twitter.com/SCAeveryday provides a good summary of every thing happening at sca.com and in SCA s social media. The aim is to provide various users, journalists and bloggers with relevant information. Scribd.com/ SCAeveryday makes some 50 publications available, including SCA s sustainability report, its Hygiene Matters report and Shape magazine. Flickr.com/ HygieneMatters supports the launch of the global report Hygiene Matters with images. 2 SCA SHAPE 4 2012

CONTENTS 06. Valuable rubbish The secondhand market for trash is expanding with rising awareness of our planet s limits. 16. Sense for business Professor Diana Derval takes a close look at sensory perceptions and turns her consumer research into hot marketing. 20. A cost-effective approach Print advertising, delivered through targeted direct mail, challenges the digital channels. 22. Risk of leakage Incontinence affects people of all ages. One-tenth of all teenagers and young women suffer from bladder problems. 25. Slim and better Thinner saw blades mean more wood and less waste. A sawmill in Sweden reports big gains. 32. Importance of branding Strong brands often do better than others when times get tough. 36. Great expectations Wind power production in the European Union is expected to triple by 2020. SCA will soon become a major producer of renewable electricity. ALSO... SCA SUPPORTS forest protection page 4 12 HOURS with Angela Martinez pages 30-31 A SKIPPER WHO knows what it takes page 34 HIGH RATINGS in sustainability page 35 How do you transport a wind power tower? Find the answer on page 36. SCA SHAPE 43 2012 3

FEATURE UPDATEDBusiness news from SCA SCA offi cial to help guard forests THE FOREST STEWARDSHIP COUNCIL will soon get the company of Hans Djurberg, sustainability director at SCA. Djurberg has been elected to the FSC International board of directors. FSC is the most important and recognized platform available for dialogue on forestry, both globally and nationally. Iam very proud to have been elected, and it is of great importance that the forest management and industry structure we represent has a voice in FSC s senior management Djurberg says. It is critical for the viability of the system that forest owners and forest-based industry participate actively in shaping it for the future, not least to secure that demands are possible to implement and that they make a difference on the ground. 4 SCA SHAPE 4 2012

GETTY IMAGES GETTY IMAGES AUTUMN NEWS BRITISH NEWS- PRINT FACILITY STAKE SOLD SCA has divested its 50 percent shareholding in the UK-based newsprint facility Aylesford Newsprint to private equity company Martland Holdings. SHUTTERSTOCK Strong wind power STATKRAFT SCA VIND AB is investing 6 billion Swedish kronor (900 million US dollars) in two wind parks in northern Sweden. The company, owned by Statkraft (60 percent) and SCA Forest Products (40 percent), is planning to build seven wind parks in Sweden with 360 wind turbines. Two of the wind parks are already under construction. In total, the seven wind parks will provide production of 3,000 GWh a year, more than 2 percent of all electricity used in Sweden. Read more on page 36 A new efficiency program has been initiated within the hygiene operations. It will provide annual cost savings of some 300 million euros. CEO Jan Johansson on the Capital Market Day, November 5 CARBON DISCLOSURE RECOGNIZED SCA HAS QUALIFIED for the Carbon Disclo- sure Leadership Index for the third time. The index highlights the constitu- ent companies of the Nordic 260 Index that have displayed the most profes- sional approach to corporate governance in regard to climate change disclosure practices. The index, published by the Carbon Disclosure Project, provides an evaluation tool for institutional investors and recognizes companies with the best reporting prac- tices and performance to tackle carbon dioxide emissions and climate change. SUSTAINABLE ENOUGH FOR DOW JONES SCA has once again been included in the Dow Jones Sustainability Europe Index, one of the world s most prestigious sustainability indexes. For more information: www.sustainabilityindexes.com Read more on page 35. INVESTMENT IN LIME KILN A new lime kiln at the kraftliner mill in Munksund, Sweden, will substitute biofuel for oil, saving about 50 million Swedish kronor (5.7 million euros) a year and reducing fossil carbon dioxide emissions by 75 percent. The lime kiln is expected to be put in operation in fall 2014. The investment is worth about 490 million kronor (56 million euros). SCA SHAPE 4 2012 5

PHOTO DON HANKINS, GALLERY STOCK T EN YEARS AGO, a farmer might have left an old tractor in the field to rust rather than bother recycling it. No longer. Prices for used metal have risen so high that people see money in trash, and they take their cast-offs to the scrapyard. On the metals side, there is very little that does not get recycled, says Björn Grufman, president of the Bureau of International Recycling (BIR), an association based in Brussels that represents some 850 businesses and 40 federations across the globe. For metal, the material is coming out of the woodwork. Overall, public awareness of recycling has risen significantly in recent years, he says, and a wider variety of materials are being recycled. While metals command the highest prices, established global markets exist for such commodities as wastepaper, shredded tires, scrap carpet, glass, vinyl, polyurethane foam, plastic bags and used footwear. There is a huge international trading 6 SCA SHAPE 4 2012

TREASURE FROM trash text NANCY PICK In waste lies opportunity. The secondhand market for trash paper, plastic and metal is big business, generating money for recycling processors and investors around the globe. Nike s Reuse-a-Shoe program turns old athletic shoes into new sports surfaces. SCA SHAPE 4 2012 7

focus: recycling PHOTO: st audinger+franke market in recycled raw materials, Grufman says. These are major commodities, just like virgin raw materials. Many traders today buy and sell both virgin and recycled. Recycling has dramatically increased over the past decade, due in part to heightened environmental awareness and concern about the future of our planet. While recycling remains voluntary in most nations, the EU has passed legislation making it mandatory for its member countries. By 2020, EU countries will be required to recycle, compost or reuse 50 percent of all household rubbish. Countries that fall short will face penalties. In general, raw recyclables flow in one direction: from countries with high GDPs to countries with lower ones. China is the big magnet, Grufman says. With their five-year plans, their need for raw materials is enormous. China drives the entire market in recovered paper, importing some 24 million metric tons a year, mainly from the US and Europe. Although spot prices have been volatile, Grufman generally sees progress in the markets for traditional raw recyclables like plastics and paper. In recent years, the paper market has been changing, as newspaper readership declines in much of the developed world. It s difficult to obtain the amount of newsprint you had 10 or 20 years ago, Grufman says. But on the other hand, there s more packaging available. With the rise of online shopping, the average household is now receiving many more cardboard shipping boxes than in the past. Meanwhile, paper recycling rates have been rising. In 2011, the US recycled about 67 percent of its paper and paperboard. The EU topped that slightly by recycling 70 percent of its paper and paperboard in 2011, despite lagging rates in some eastern European countries. China, in addition to importing huge amounts of waste paper from other countries, has begun collecting more of its own used paper. What does paper recycling involve? Typically, paper companies take old corrugated containers better known as cardboard boxes and other wastepaper, and use them to make such products as brown paper towels, cardboard tubes, animal bedding, coffee filters and cellulose 8 sca Shape 4 2012

Electrical equipment of all kinds can be recycled through US electronics retailer Best Buy. PHOTO: GARY ANDERSSON Gary Anderson and his original design of the recycling logo There is a huge international trading market in recycled raw materials. variation in efforts Recycling has come a long way since 1970, when graphic designer Gary Anderson drew a Möbius strip with three arrows, circling forever. While that logo is now recognized around the world, individual countries recycling efforts vary widely. A quick glimpse of some recycling efforts across the globe: Switzerland recycles 52 percent of its municipal waste (mainly paper, plastic, and metal), the highest in Europe. Austria ranks a close second. The UK recycles only about 18 percent of its municipal trash (mainly paper, plastic and metal). Japan recycles more of its plastic than any other country: 77 percent. In the US, only about 7 percent of plastic waste gets recycled. Most of that is shipped to China, where it gets turned into products like fabric, carpets and plastic toys. Singapore s total recycling rate increased by 117 percent between 2000 and 2011. The country recycles nearly all of its construction debris and more than half of its paper and cardboard. In Dubai, recycling efforts are just beginning. Currently, some 90 percent of the country s trash ends up in landfills.

FOCUS: RECYCLING Prices for used metal have risen so high that people are seeing cash in trash. PHOTO: FOLIO insulation. Researchers are even experimenting with using compressed paper mixed with concrete to form papercrete blocks, used to build affordable housing. As for plastics, not many were being recycled in Europe even 15 years ago, beyond Germany s Grüne Punkt ( Green Dot ) program for packaging materials. Now, says Grufman, the recycled plastic industry has taken off, with new and clever techniques being developed all the time. In the past, used electronics were valued mainly for the small amounts of valuable metals they contained, including nickel and gold. Now their plastic is also being reprocessed. In the EU, the Waste Electrical and Electronic Equipment Directive encourages manufacturers to mark the types of plastics used in their electronic devices, to make recycling easier. ANOTHER GLOBAL INITIATIVE involves producer responsibility persuading manufacturers to design their products with recycling in mind. If producers must pay the cost of recycling their products in an environmentally sound way, then they will start making products that are more responsible, Grufman says. Slowly but surely, companies are moving toward taking back their own products for recycling. 10 SCA SHAPE 4 2012 Nike launched its global Reuse-A-Shoe program in 1990, and to date it has collected some 28 million shoes, turning them into rubbery pellets used for sports surfaces. In 2005, the US outdoor clothing company Patagonia started its Common Threads program, taking back its own textiles to be repurposed. PERHAPS MORE surprising is the ambitious recycling program at Best Buy, the US electronics retail giant. The stores began collecting used devices from consumers in 2009 not just broken ipods, but nearly anything electrical, from refrigerators to rice cookers. The recycling service is free to consumers, and Best Buy makes a small profit on the operation. Despite recent advances in recycling, the BIR believes trade barriers remain a problem. Copper, for one, is critical for electric motors, and the earth s crust does not contain vast amounts of it. We know there is a limited amount of copper, and we should be very careful to keep whatever we have in use, Grufman says. Currently, less than half of the world s copper gets recycled. If we are to be successful in recycling more copper to keep it being used again and again then we must have free and fair trade, he says. Copper should be exported to the best recycler globally. Used outdoor clothing takes on new life with Patagonia s Common Threads program. If producers must pay the cost of re-cycling their products, then they will make products that are more responsible.

PHOTO: GETTY IMAGES FOCUS: RECYCLING Products reborn Park benches from incontinence briefs. Forest roads from sludge. Here are a few examples of how SCA promotes new uses for old materials. Soon to be another sheet of paper? text NANCY PICK SWEDEN SECURING THE PAPER SUPPLY SWEDEN S paper recycling program ranks among the world s most successful. Back in 1994, the country passed tough laws requiring paper producers to pay for collecting and recycling of paper products. The result: Sweden now recovers an incredible 95 percent of its newspapers, magazines and other printed matter. For most Swedes, it comes very naturally to sort paper and packaging, said Göran Nilsson, managing director of Pressretur, the company that oversees mandatory paper recycling across the country. Pressretur is jointly owned by three large Swedish paper manufacturers, including SCA. When paper companies were hit with this legislation, we decided it was better go in together, he said. From the beginning, we have been free to organize the system the way we want. SCA SHAPE 4 2012 11

FOCUS: RECYCLING USA GREENING COLLEGES MANY COLLEGES in the Northeast US want to go green, and now SCA in North America can offer them something attractive: closed-loop recycling. Under this system, waste from a college gets collected, processed and then remade into products that the college can use again. SCA calls its initiative The Power of Three, because it relies on three companies joining forces SCA, Casella Waste Systems and Foley Distributing. First, Casella collects and sorts all of a college s recyclable materials. Next, it sends the recovered paper to SCA S plant in South Glens Falls, New York, where SCA turns the used paper into hand towels and tissue products. Finally, Foley Distributing closes the loop, by delivering these recycled paper products back to the college. Not only does the Power of Three reduce carbon emissions by keeping the loop within a limited geographic area, but it also helps colleges or the clever students who attend them to calculate their carbon footprints. Pressretur is not a profit-making venture, but rather costs the participating companies money. While expensive, the system does bring certain advantages. We get a very stable supply of recovered paper for our mills, and we get very good quality control, said Nilsson. The paper we collect has a very low level of impurities. The quality of recovered paper can be a major problem in countries like the US, where recyclables are not always separated. As a result, paper often gets contaminated by pizza grease or other impurities. To collect and sort paper, Pressretur contracts with large and small waste management companies throughout Sweden, operating more than 5,000 recycling stations. Although the Pressretur system has been working smoothly for years, the government has recently been studying a plan to shift paper recycling away from Pressretur and into the hands of individual communities. We would no longer be in control of the collection, cost and quality, said Nilsson. For the paper industry this would be bad news, so we plan to fight it. PHOTO: GALLERY STOCK Leg holes from incontinence briefs become benches. CANADA FROM LEG HOLES TO PARK BENCHES TO MAKE ADULT incontinence briefs, you need to punch out a lot of leg holes. At SCA s Drummondville factory in Quebec, Canada, those U-shaped plastic pieces do not go to waste. The remnants, packaged into 300-kilogram bales, are sent down the road to another company. Melted down, the cut-outs become plastic lumber and high-end park benches. 12 SCA SHAPE 4 2012

Oooops! Time to switch to lights by TENA? lights by TENA are specifically designed to absorb faster than ordinary liners. So, if you re like the 1 in 2 women who experience little leaks, you can still get on with your day, while feeling fresher, drier and more confident. For a free sample pack of the full lights by TENA range visit lightsbytena.co.uk Download my pff our new pelvic floor fitness app designed to help stop those oooops moments. Available for iphone and Android.

focus: recycling He or she does not tell. Gunnar Johansson on employees who find money while recycling paper. All SCA tissue made in North America is made from recycled material. North AmericA 100% recycled Tissue From towels to toilet tissue, the paper products made by SCA in North America are 100 percent recycled. But securing a steady supply of the used paper needed to make them nearly 1 million tons per year isn t easy. It s cheaper to ship a ton of recycled fiber from Los Angeles to Shanghai (10,000 kilometers) than to ship it from Los Angeles to our mill in Arizona (750 kilometers), says Michael Jansen, vice president for product planning and logistics. Containers that return to China after delivering goods to the US are empty so shipping costs from the US to China are practically free. That s a major issue we ve had to deal with. At the same time, the rise of electronic communications means that the supply of high-quality recovered paper is dwindling as demand is growing. That was the trend we saw 10 years ago, Jansen says. We knew that both availability and fiber quality were going to worsen over time, so we invested in our de-inking facilities to give us greater flexibility. In addition to upgrading its US mills, SCA signed long-term agreements with waste collection companies close to its facilities, guaranteeing a supply of material. SCA has also secured relationships with printers who sell their high-grade waste paper. In the end, these efforts make a real difference to SCA s customers. We have secured supply sources to protect our business over the next decade, says Jansen. Many of our end users will only buy recycled products, and we will be there for them, for years to come. sweden Turning ash into cash there is money in paper recycling. Literally. We produce tissue here in Lilla Edet using recycled paper that contains different impurities, said Gunnar Johansson, quality and environmental manager at the SCA mill in western Sweden. We screen out worn fibers, paper fillers, ink, metal staples, plastic, sand and even tennis balls. From time to time, employees find another item that does not dissolve in water: paper money. Once that has been pocketed, sludge made from the less exciting impurities gets burned in the mill s boiler producing steam for drying paper, heat for the plant and a modest amount of electricity. The sludge-burning process creates another by-product: more than 25,000 tons of ash every year. SCA has been thinking creatively about turning that ash into valuable products. So far, the company is using it as: W Construction material for forest roads W Binder in asphalt W Deep soil stabilizer for roads W Replacement for lime, used to raise the ph of farm soil As for the actual money, any employee who finds a bill during the screening process gets to keep it. He or she does not tell, Johansson says. 14 sca Shape 4 2012

10 QUESTIONS A question of hormones Have you ever thought of why you prefer blue to red, or the scent of orange to that of lavender? Professor Diana Derval has. Before you re born, she says, the hormones you re exposed to in the womb determine your future preferences in smells, shapes, textures and sounds. And she knows how to turn her research into hot marketing. text ANNA MCQUEEN photo MALOU VAN BREEVOORT W hat made you want to study science? I was born in Paris and grew up between Paris and Munich. My mother was a chess champion, so I think that s where I got my ability to think several moves ahead. My father was a painter who did a lot of business in Germany, so I think my observation skills are probably down to him. I didn t come from a wealthy family so I went to work at 18, but I put myself through school. I m a great believer in continuing education. And what inspired your interest in sensory science? When I set up DervalResearch, our first client was Sara Lee s Douwe Egberts coffee division, which wanted to better understand coffee drinkers preferences. 16 SCA SHAPE 3 2012

SCA SHAPE 3 2012 17

10 questions Female shoppers with a testosterone-driven HQ are more likely to prefer fruity to floral scents. I began to wonder what makes some people love coffee or tea, why some can only drink it with sugar and others with milk. To me, these weren t simple preferences they went further than that. I m like that annoying kid who just keeps asking Why? and I never stop until I m happy with the answer. What did you conclude? I didn t buy into the socio-demographics of marketing. I felt there must be something else determining our brand preferences, and I started looking at variations in sensory perception. For example, some people hear sounds four times louder than others, some are six times more sensitive to textures, and nearsighted people prefer short-waved colors like blue. Indeed, people with myopia focus light in front of the retina, making it effortless to view blue colors, whereas viewing red requires more muscle effort. As a result, they see blue as a more relaxing color, whereas farsighted people are just the opposite. It became clear to me that product preferences are directly linked to the millions of sensors monitoring our bodies and brains. How can this be used to help marketers? Studies have shown that the number and distribution of these sensors is governed to a great extent by the prenatal hormones to which we are exposed in the womb. So we carried out our own research with 3,500 people in 25 different countries, and we identified eight gender polymorphisms in humans that are defined from birth the Hormonal Quotient, or HQ. We established that the people in these categories share similar preferences in terms of colors, tastes, shapes, textures, scents and sounds. This provides a valuable segmentation tool to help marketers predict consumer preferences based on sensory perception that is far more effective than basing their segmentations on income, sex or age. Besides hormone research and marketing Diana Derval is into martial arts. Diana Derval Age: 40. Lives: In Amsterdam, the Netherlands and Chicago, US. Family: Married to Johan Bremer, co-author of Hormones, Talent, and Career: Unlock your Hormonal Quotient, and co-inventor of the Hormonal Quotient Wheel. Job: President, Research Director at DervalResearch. Education: BS in engineering, BA in literature, MS in marketing, MBA, working on a PhD ( The Influence of Hormones on Product Preferences ). Hobbies: Playing bass guitar, practicing martial arts, reality TV shows, observing people. Secret talent: My plan B was stand-up comedian. Want to know your HQ? See www.derval-research.com 18 sca Shape 4 2012

SOFT ENOUGH FOR YOU? When SCA decided to apply the DervalReseach approach to consumer tissue, it carried out a proof of concept test in a Scandinavian supermarket. The highly competitive Nordic market is a tough one for tissue products, and DervalResearch wanted to demonstrate how products could be adapted to physiological preferences. The research group created a new tissue product to target a particular Hormonal Quotient (HQ) category and presented it for sale on the shelf. Once people had bought the product, they were invited to test their HQ and provide feedback about the product. The results were clear. With three or four products, SCA can address the whole Nordic tissue market and meet the different expectations of each HQ segment, Derval says. In this instance we targeted one category, and in-store sales tripled. Along with the positive feedback we got from in-home testing, we proved that we can design a consistent packaging and product to appeal to a specific category and people will choose that product and stick to it. So what does the HQ test involve? The test is available online and takes into account a range of information including gender, ethnicity, age and biological markers. It provides information about your personality, sensory traits and leadership style. Can you give us some examples? We recently collaborated with the motorcycle maker Harley-Davidson and found that all their female clients were highly influenced by prenatal testosterone. Other tests have shown that female shoppers with a testosterone-driven HQ are more likely to prefer fruity to floral scents. Information like this is invaluable for fragrance retailers or men who are looking for that perfect gift. What were some of your most fascinating discoveries? Finding that many of the differences in our behavior stem from something beyond our control was very important. Realizing that someone s inability to cope with their crying baby could be due to their increased sensitivity to that audio frequency can really help people not feel guilty for their failings and focus on their strengths. Another major discovery was when we established why nearsighted people prefer blue and farsighted prefer red. Prior to that, all color-based marketing had been based on a foolish idea of colors being perceived as warm or cold, whereas in fact the preferences we have as consumers are purely physiological. Diana s book. TIPS FOR MARKETERS $ Price, culture and emotion are never the real reasons behind a purchasing decision. $ You cannot create needs, but you can spot them and analyze them on a physiological level. $ Observing is better than asking. $ People are unique, but those with the same HQ share preferences and behavior. $ Never do anything that doesn t have a direct impact on sales. What has brought you the most satisfaction? My research led me to establish the Better Immune System Foundation in 2009, for research into chronic diseases. Many chronic symptoms such as eczema, asthma and sinusitis seem related to our immune system. The foundation s mission is to conduct research, information and prevention programs for a better immune system, and I m very proud of the work we do for the greater good. You are not only a scientist but also a businesswoman? Well, yes, in 2008 we were named by L Entreprise magazine as Smart Business Idea of the Year, which was a wonderful accolade. Also, one of my books, The Right Sensory Mix, was nominated as a finalist for the best marketing book of 2011 by the American Marketing Association. It was the first scientific book to gain such a distinction, so that was a very proud moment. What is your ultimate goal? My personal goal is to make a major contribution to the field of health and well-being. We have succeeded in helping businesses and consumers through our groundbreaking findings, but it would be a waste not to use our research skills for the greater good. A Nobel Prize would be the ultimate achievement, but why not? We ve already made so many advances with little funding that I see no point in not aiming for the very top. SCA SHAPE 4 2012 19

MARKET Hands-on marketing We ve all heard how the Internet was supposed to make print advertising obsolete. But while marketers chase the latest digital channel or social network, they shouldn t forget the time-tested approach of direct mail. It s often the best way to reach customers in a cost-effective, targeted and measurable fashion. text ANNA MCQUEEN DIRECT MAIL MARKETING, when carefully managed, outperforms many alternatives, industry experts say. A catalog or a direct mail piece in their mailbox is an intrusive tap on the shoulder that online-only activities don t allow, says Lois Brayfield, president of J. Schmid & Associates, a US catalog consultancy based in suburban Kansas City. Moreover, the tactile nature of direct mail is very appealing to consumers. You can feel a mail piece in your hands, she says. You can hear an envelope or tab tear open. You can see the images and key messages on the printed page. You might even be able to smell it. A 2010 study in Sweden showed that young people there trusted printed media more than the Internet. The survey of more than 1,000 Swedes by United Minds found that 70 percent said they received interesting offers through direct mail that helped them shop better, and 53 percent agreed that direct mail is relevant and supplies new information. 20 SCA SHAPE 4 2012