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 user 2008-11-10 at 10:11:24 am Views: 37
  • #20770

    Nearly half of ink cartridges used in AP are not originals
    Original printer ink cartridge vendors will need to be vigilant against counterfeits products, which are often mixed with originals or gray products, a study by IDC warned.
    The IDC Asia/Pacific Quarterly Printer Consumables Tracker which covered Australia, India, Indonesia, Malaysia, Philippines, People’s Republic of China (PRC), South Korea, Singapore, Thailand and Taiwan, indicated that the recent turmoil in the financial markets will inevitably impact on the printer consumables market.”Particularly for countries such as India and the PRC where users are more price sensitive, this may provide opportunities to the non-original products,” it said. “Printing activities in the home space will likely to be reduced, putting more pressure especially for the ink cartridge market. It is hence important for original vendors to find ways to counter the raising costs and provide better value preposition to the end-users such as introducing better efficient cartridges with lower cost per page.”

    The loyalty rate for inkjet cartridges averaged about 62% for Asia Pacific except Japan. Original vendors secured at least two thirds of the ink cartridge market share in most countries but faced greater challenges in India, Indonesia, Korea and the PRC. Users in these countries are more willing to use third party products, especially low cost refill products/services.Original vendors seek to provide better value proposition to the end-users such as vibrant print quality, longer lasting prints, loyalty programs, low/high yield cartridges for occasional/frequent users etc., to garner users’ loyalty.

    On the other hand, apart from very competitive pricing, third party vendors have various products offerings such as continuous inking supply systems or “Do-It-Yourself” refills kits to attract the users.Users stand to benefit from this tug-of-war between the original and compatible players as they are presented with more choices, the study said.

    In Singapore, original vendors are enjoying very high loyalty rates in the toner space. About 4 in every 5 of the toner cartridge shipped are originals. This is much higher than the overall toner loyalty rate of 59% for the Asia/Pacific excluding Japan (APEJ) region.Loyalty rates are below 50% in the PRC (46%) and India (39%), which have a higher composition of cost conscious users compared to the rest of the region. Original vendors have to be watchful as their increasing laser installed base will also attract more third party players, who are also eyeing on a share of the revenue.

    IDC’s Asia/Pacific Quarterly Printer Consumables Tracker showed that the printer consumables market grew about 5% yearonyear to reach 46 million units in the second quarter of 2008.Inkjet cartridge remained dominant, accounting for 80% of the total printer consumables market or close to 37 million units. Strong growth continued in the laser toner market with 18% growth year-on-year to exceed the 9 million mark this quarter.

    In the second quarter of 2008, the inkjet cartridge market only managed to ink a 2% growth, which pales in comparison to 8% growth in the same quarter last year.Growth in most countries were modest at 3 to 4% except for slightly better compared to the growth in Thailand (10%) and Philippines (7%). HP, Epson and Canon remained the key stakeholders in the inkjet cartridge market with a combined unit market share of 90%.

    Increasing adoption of laser Single Function Printers (SFPs) and Multifunction Peripheral (MFPs) continued to strengthen the demand for toners in the market with the key vendors showing very strong double-digit growth.”There was strong growth exceeding 20% in the toner markets of India, Indonesia, the PRC and Thailand,” said Shirley Teo, Research Manager of IDC’s Asia/Pacific.