LATEST ON INDIA’S MFP MARKET

  • 4toner4
  • banner-01-26-17b
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • futor_902x177v7-tonernew
  • 2toner1-2
  • ink-direct-banner-902-x-177-v-1-2-big-banner-03-23-2017
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • 161213_banner_futorag_902x177px
  • Print
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • clover-depot-intl-us-ca-email-signature-05-10-2017-902x1772
Share

LATEST ON INDIA’S MFP MARKET

 user 2006-01-07 at 10:38:00 am Views: 78
  • #13763

    Need for speed puts laser MFDs on top(India)
    Trends such as variable information printing and print-on-demand are leading to greater usage of laser-printing, even in colour.
    According
    to IDC, the laser MFD market will have a CAGR of around 40 percent
    during 2004-2006. In terms of value, laser MFDs cornered a bigger share
    of the pie with the ratio of laser to inkjet being 60:40 of a nearly Rs
    600 crore market in 2005.
    Indian enterprises are demanding
    high-speed printing coupled with excellent output quality. This has led
    to the deployment of high-end MFDs that print at 35 to 105 pages per
    minute (PPM). Costs range from Rs 55,000 to Rs 25,00,000 and these
    machines are equipped with functions like document storage,
    integration, and password protection.
    Initially the MFD market grew
    at 25 to 30 percent quarter-on-quarter (QoQ), to stabilise at 8 to 11
    percent QoQ. That’s still a CAGR of over 40 percent making it the
    strongest segment in the laser printer category.
    Samsung India
    The
    world over, flatbed MFDs are more popular, although they are priced
    higher than their sheetfed counterparts. “I feel that the value
    proposition of flatbeds will drive the market in 2006. In 2005,
    competitively priced sheetfeds grew by almost 400 percent in Q2 &
    Q3 (compared to similar quarters in 2004). However, growth rates for
    this category dropped in Q4. We believe that flatbeds will be the
    growth engine in 2006,” comments Vikram Singh Negi, Country Product
    Manager, Multifunction Printers, Samsung India.
    Meanwhile, the
    3-in-1 space (sans fax) has emerged as a distinct category and is being
    preferred by consumers shifting from standalone devices. 3-in-1
    machines are available at a 20 to 30 percent premium vis-a-vis
    standalones making them a viable option.
    The copier-based MFD
    category has stagnated. “With the new generation of higher speed
    printer-based MFDs coming out in 2006, there will be significant
    cannibalisation of entry-level A3 copier-based MFDs by high-speed
    (40PPM+), heavy duty printer-based A4 MFDs,” believes Negi.
    The
    average selling price is declining at about 10 to 13 percent QoQ but
    that’s being compensated for by rising toner sales, on account of more
    machines being deployed.
    Laser MFDs are popular in banking and
    government, hospitality and with professionals (SOHOs) such as lawyers,
    CAs, CSs and doctors.
    Vendors are positioning high and mid-end laser MFDs as part of a document management solution.
    Vendor strategies
    “With growing acceptance and user familiarisation, MFDs have begun to emerge as ‘communication hubs’ for networked offices”
    Xerox India
    Xerox
    is establishing a footprint across India by offering a compelling
    channel value proposition to Indian resellers. “We are promoting colour
    in the digital office, digital production and value-added services and
    driving the adoption of MFDs in the enterprise,” says Natesh Mani,
    Executive Director, New Office Group, Xerox India. The company is
    strengthening its two-tier distribution model by shifting sales
    activities from a direct model to an indirect one.
    Negi says, “We
    are concentrating on the SOHO and SMB segments.” To this end, SIEL
    strengthened its distribution channel in 2005 and consolidated its hold
    of the office automation and fax channel. Its product strategy is to
    concentrate on printer-based MFDs, have a wide product portfolio at the
    entry level and one or two models at the high-end.
    Epson India is
    looking for distribution partners who are willing to provide solutions
    to customers. “We will be looking at a segmented approach backed by a
    fairly high decibel marketing and advertising campaign. We will
    leverage our strength in the dot matrix segment,” explains Prabagaran,
    Business Manager, Laser Printers at Epson India.
    Canon feels that
    the adoption of colour lasers in large enterprise has been impressive.
    “We are coming up with scalable, software-based solutions to cater to
    demands of high quality and secure printing for the enterprise. Our
    corporate colour portfolio is tripling every month in comparison to the
    same numbers last year and we are looking to be number one in the laser
    space,” says Som Gangopadhyay, Marketing Head, Office Systems and
    Solutions, Canon India.
    The communication hub
    Colour laser
    printers are being used for printing business documents with graphs and
    other colour graphics across industry sectors. Colour printing is now
    affordable and the ratio for colour and B&W printing is 1:4 as
    opposed to 1:20 some years ago. The concept of print-on-demand (PoD)
    that allows commercial printers and other print providers to quickly
    turn around short, economical print runs of a precise number of
    documents is catching on. The digital printing industry is a consumer
    of this technology. Other applications are menu cards, marriage
    invitations, business cards and so on and laser printers are
    increasingly used to support these PoD applications.
    Office Systems and Solutions Canon India
    Laser
    printers have emerged as solutions that both vendors and partners can
    position as a must-have for corporate buyers. It is emerging as the
    most sought after mainstream printing device. The market continues to
    be stimulated by falling prices and improved technology. It seems
    inevitable that B&W laser and colour laser printers will soon
    become as commonplace and indispensable as the photocopier.
    The
    convergence of the copier and printer industries is gathering pace. The
    advent of multifunction devices (also known as All-In-Ones) can
    potentially replace standalone peripherals such as scanners, copiers,
    fax machines and printers, making MFDs the category to watch out for in
    office automation and digital imaging solutions. “With growing
    acceptance and user familiarisation, MFDs have begun to emerge as
    ‘communication hubs’ for networked offices,” says Mani.
    “The market
    is currently witnessing a trend towards multifunction networked units.
    Electronic document storage and distribution is picking up. Most
    enterprises, both small and large, spend a colossal amount of time in
    collating and disseminating information. What they now want is a
    solution that saves space, cost and is easy to operate taking care of
    their documentation needs,” says Anil Sodhani, National Marketing
    Manager, Sharp Business Systems.
    Variable information printing is
    another application that’s picking up. It permits customised
    promotional material to be printed. By customising promos, companies
    stand to possibly double or triple response rates of direct marketing
    campaigns. In order to deliver the appropriate information to the
    target audience, database analysis and management are employed in
    variable printing. It lets printer manufacturers position themselves as
    information service providers. Variable printing is a powerful tool for
    marketing and communication. “We have something called the
    Multi-Embedded Application Platform (MEAP), which is an open Java-based
    architecture. It can seamlessly integrate with any ERP platform or
    operating system in the customer’s workgroup environment,” says
    Gangopadhyay.
    Sectors driving the growth of laser technology are
    BFSI, ITeS, software, education, telecom, government, construction and
    utilities.
    A slow transition
    However, the transition from inkjet
    to laser isn’t happening as fast as it should. “There are several
    bottlenecks. Changing over from inkjets to lasers is not a smooth
    process. The perceived high price of the laser printer, which over a
    period has become affordable, has to a great extent hampered the spread
    of this technology. The logistics of buy-back of inkjets for lasers
    have also not been streamlined so far,” feels Mani.
    “Perceived
    initial investment is a major bottleneck for driving the laser printer
    segment. The perception is that running cost is high. Refilling is a
    problem as quality suffers on account of sub-standard toner,” adds
    Prabagaran.
    Adoption of lasers is low in the largest segment in
    India – home. “This is due to non-availability of affordable colour
    MFDs,” says Negi. Inkjet AIOs rule in this segment and the share of
    laser mono MFDs is less than 3 percent.
    In SOHO and SMB segments,
    growth has slowed down due to user inertia. They do not like to change
    as they are comfortable with standalone devices. “Users still consider
    MFDs as complex devices and have a fear that consolidating all
    functions in a single machine might result in a collapse if the machine
    breaks down,” explains Negi. This fear is the outcome of user
    experience in inkjet AIOs which break down regularly due to more
    mechanical parts in their design and the use of low-cost material (for
    price competitiveness). In laser MFDs the breakdown is comparable to
    that of standalone devices. However, the change in perception has not
    sunk in and is inhibiting early adoption.
    The challenge for any CIO
    today is to keep an updated infrastructure as technologies become
    obsolete overnight. Scalability, upgradeability and
    future-manageability form a crucial aspect of enterprise IT. The
    emergence of workgroup printing solutions in the networked environment
    for the enterprise is contributing to the popularity of laser-printing
    technology.
    “Colour will drive the business form next year. The
    colour laser market is likely to explode from the middle of 2006. The
    availability of an A4 laser MFD at a price below Rs one lakh is one of
    the factors that could lead to this,” declares Gangopadhyay.