The fortune of the printer market, for obvious reasons, is closely linked to
the PC market. So a dip in the PC market would cause a steeper decline in the
printer market as had happened in FY09. The PC market revived to a certain
extent in FY10, and printers too followed suit. A closer investigation would
reveal that sales figures too would correspond on a quarterly basis. Both PCs
and printers had a slower H1, with signs of revival showing from Q3 onwards-and
finally ending the year with the best quarter.
Seeing how different categories of printers fared is important to understand
the buying patterns that emerged in FY10. Inkjet MFD and single-function laser
both grew, albeit by varying margins; that showed both consumer buying
sentiments reviving as well as the SOHO and SMB sectors gradually picking up
again. Dot matrix still grew proving it had its own share of takers in the
government and PSU sector. However, the steep decline in sales of laser MFDs
meant enterprises were still not ready to make adequate capital outlays on
hardware. Besides, managed printing services becoming mainstream in
organizations too might have impacted the laser MFD adoption.
Inkjet: SOHOs Show the Way
The dip in single-function inkjet was not surprising, and it might just get
phased out completely. On the other hand, the overwhelming growth of inkjet
multifuction can be attributed to increasing demands in the SOHO segment. Even
if the inkjet multifunction clocked in Rs 145 crore, which was comparitively
lesser to the Laser MFD, the growth rate was much higher here. In this category,
Canon launched two single format inkjet printers. HP maintained its market
dominance with a steady base of offerings, standing strongest with a market
share of 70 percent in the overall inkjet category. HP's current market share in
the inkjet all-in-one segment is 73 percent, according to IDC. This is quite a
testimonial to the company's strong base of customers across the multiple tiers.
Estimating growth opportunities in the inkjet category, the company launched
OfficeJet 4500 series namely the HP Officejet 4500 Desktop and the
network-enabled HP Officejet 4500 priced at Rs 6,999 and Rs 7,999 respectively.
With regards to volume, Epson has about 16 percent market share, but in terms
of value, it is around 30 percent. In this space, Epson launched five models in
the Inkjet category with the asp range of 2990-22,999. There is no denying the
fact that SOHO is the major segment for inkjets across its single and
multifunction variety. Here again, the recent trend shows that single function
printers are slowly picking up with all-in-ones.
Laser: Buck up Time
When it comes to Lasers, Canon captured the #1 place in market share-34.5
percent in laser category including laser printer and laser MFD in Q1 2010. The
overall multifunction laser market declined by 22 percent, clocking in Rs 620
crore. In this category, Samsung India launched the world's smallest laser
printer, ML-1666, with the target of taking on market leader HP. It has been
focussing on major segments like government and SMB, besides offering
outsourcing solutions to top 100 corporate accounts through its vendors and
partners.
Still maintaining its hold on the market, HP launched a slew of
industry-first 'plug and print' laser printers to enable SMBs to fast track
their growth in the current Indian economy. The products are mainly in the
LaserJet category namely LaserJet Pro M1136 MFP and M1213 MFP series, LaserJet
Pro P1566 Printer and LaserJet Pro P1606DN.
On the other hand, Samsung unveiled three Mono Laser printers namely ML 1911,
ML 2525 and ML 2581N. These stylish and compact laser printers boast of monthly
duty cycles up to 12,000 pages, 8MB memory and print speeds of 18ppm/24 ppm
pages
Dot Matrix: Stagnant Yet Steady
Dot Matrix printer is one segment which more or less remained stagnant.
EPSON is the major shareholder with 43 percent of this market, and this has been
the case for quite some years now. DMP as a technology is the most preferred for
transactions printing across organizations. Being traditionally the strongest
player in the DMP market, EPSON launched the LQ-50 dot matrix bill printer
especially for the retail segment. LQ-50 comes equipped with ten Indian
languages, with an aim to automate the rural market.
As per a MAIT-IMRB study, the consumption of dot matrix printers grew by 13
percent in OND 2009-10 compared to the same period in the previous year. This
might be attributed to a significant increase in e-governance projects and power
projects resulting from the boom in the infrastructure sector. The next in
command was TVS, with a market share of 36 percent (2 percent decline). Wep
Peripherals was the only company showing any growth (3 percent). EPSON's
constant hold on the DMP market can be attributed to its channel engagement
program wherein it educated all its channel partners on its existing line of
products. Herein Wep launched its CSX450, the high speed printer in the 80
column segment.
Power-packed Performance
In the third quarter of FY10, almost all the vendors sowed significant
growth in shipments. Canon showed the way with a 120 percent increase, followed
by Samsung with 55 percent and HP with 29 percent growth.
Canon has been undertaking significant initiatives to boost its printer
business through initiatives such as the 'Canon Image Express' for its tier-2
and tier-3 cities, which is the largest consumer exhibition on wheels and is
based on 'BIBLE' which means 'Before I Buy Live Experience'. This image express
has clocked over 25,000 footfalls and over Rs 1 crore in revenue. Moreover, this
year the company announced the launch of fifteen new products and expanded its
range to eighty-two IT peripheral products from its printing division, with a
current market share of 34.5 percent in the laser printer market across single
function and multi function printers. With the launch of these new products,
Canon expects them to contribute to over 50 percent of its printer division's
revenues in 2010.
On the other hand HP, in order to nullify the outcomes of its incorrect
market forecast that resulted in market surplus and inadequate supply at the
same time, focussed on managed printing services, large format printers, color
printing and services like Snapfish. It also went ahead to provides its
customers with the In House Marketing Kit software, a suite of tools that can
help SMEs to produce professional-quality marketing material by using their HP
Color LaserJet printers.
Samsung ramped up its printer business by roping in systems integrators and
local individuals to promote and enhance the product sales throughout the
country.The company also announced the launch of eight new printers under
multi-function and network categoriies and was rewarded with a growth of 58
percent over last year. The company plans to have a bullish market strategy in
terms of pricing; its latest ML 1666 laser printer comes at an MRP of Rs 5,499.
HP launched its ePrint technology that allows consumers and creative
professionals such as photographers, to print from any email device to their HP
printer, from anywhere in the world. The new ePrint-enabled ink printer is
designed to wirelessly print lab-quality photos, everyday documents, and
creative projects affordably.
In the Wi-Fi category, Canon aims to capture a 50 percent market share of the
Wi-Fi printing by end of 2010 with most of its newly launched laser printers
having a Wi-Fi capacity. In the upcoming year, Canon plans to have 80 percent of
the investment in promotions and other marketing activities, and the remaining
20 percent in improving marketing infrastructure, such as setting up Wi-Fi zones
and exclusive showrooms.
With the digital print industry growing at about 25 percent, Xerox with its
new technological innovations aimed to reduce costs and increase turnaround time
for digital printers. Products such Xerox iGen4 Press and DocuColor 7002 helped
Xerox offer better value to customers. The company has identified Real Business
Live! as this year's theme under which it will look at providing real solutions
to real business challenges of their partners and customers. In this regard, the
market player, HP is all set to focus on the number of pages printed rather than
number of units sold. The company is enhancing its channel-led managed print
services (MPS) with select channel partners, Office Printing Solutions Partners,
wherein the company makes a greater investment in business tools and programs
that enable reseller partners to offer managed print services to customers.Canon
forayed into the document management space replacing its five single function
devices with five merged function operating machines. Canon and Microsoft
entered into strategic alliance to create the document management office.
Canon's imageRUNNER ADVANCE print architecture platform has been integrated with
Microsoft SharePoint.
Looking at Greener Pastures
With the whole world pitching for green, how can the players in this segment
lag behind in green technology? FY10 saw Canon organize 'Green Cycle Program'
for cartridge e-Waste management which it launched as a pilot across forty-five
OIC's in the three cities of Delhi, Mumbai and Chennai. Focussing on green, HP
introduced its energy-efficient HP LaserJet Pro P1100 Printer series with
in-built HP Smart Install and the Auto-On/Auto-Off technology. It also launched
its HP EzPrintSaver, a cost management solution for single and multi function
printers.
Large Format: Spate of Launches
The Large Format Printer, LFP, can be broadly classified into Technical CAD
Printer and Graphics Art printer. HP, EPSON and Canon are the principal vendors
in this segment. With the aim of expanding its graphics arts portfolio, HP
launched the Designjet L25500 Printer with Latex Technology. HP maintained its
leading market share,
the #2 in the fray EPSON reinforced its position by launching two innovative
products in the Graphics printer segment, Stylus Photo TX700W, Wi-Fi enabled 6
color photo printer, and GS6000 printer. The second printer marked EPSON's
venture into the signage market. Canon launched a slew of imagePROGRAF models
namely 44-inch imagePROGRAF iPF8300, 24-inch imagePROGRAF iPF6350 and the
iPF6300 large-format printers in the LFP space. Xerox too reinstated its focus
on wide-format range of printers and showcased Xerox 6204, a printer, scanner
and copier that offers wide format affordable solutions for organizations.
Through this 6204 model, Xerox targeted five key growth sectors including:
engineering, construction and real estate, automobiles, oil, gas and petroleum
and shipping and marine.
Atreyee Dutta
atreyeed@cybermedia.co.in
Source: DQ