EPSON:STRUGGLES TO REGAIN MARKET SHARE

[Anonymous]

Epson Philippines turns to corporate users for growth
Epson
Philippines Corp. is turning towards business users for new sources of
revenue, as the company struggles to regain market share amidst a
shrinking printer market. According to IDCÂ’s numbers for 2005,
Epson’s share of the total printer market was lower by five percentage
points than the previous year and currently holds the number two
position at 34 percent. Hewlett-Packard Co.’s share, meanwhile, rose by
three percentage points and holds the top spot at 37 percent.

Canon
Inc. remains at number three with a 20 percent share of the
market.Epson Philippines Corp. president Hideto Nakamura makes a speech
during his introductory briefing with the local IT press.Hideto
Nakamura, Epson Philippines’ new president who assumed position at the
start of the company’s fiscal year last April, said that
Epson will
focus more on the corporate segment of the local market. Nakamura said
the company will focus more on the corporate market in its current
fiscal year.Aside from dot-matrix and the inkjet printers, which
account for the bulk of the Japanese company’s revenues in the
Philippines, Epson is also looking to generate more revenues from
products geared towards business users, such as LCD projectors and
wide-format printers, and those that cater to niche markets such as
point-of-sale (POS) printers for retail users and passbook printers for
banks.For the previous fiscal year ending March, Epson Philippines grew
its total revenues by about 8 percent to P1.6 billion (US$30.8
million), said Jino Alvarez, assistant general manager for sales and
marketing, in a briefing Monday announcing the company’s new
president.Dot matrix printers, a market perennially dominated by Epson,
accounted for almost half of Philippine revenues, followed by ink jet
printers and projectors. The company also reported steady growth in its
consumables business or ink cartridges even with a surge in the
popularity of ink refilling stations.“We have made our consumables a
lot more visible in the market since last year. We found out that users
have a tendency to go for alternative products if they don’t see
original cartridges available,” Alvarez said.

Striking a balance
Alvarez
said the company now wants to become more user-focused, rather than
product-oriented, in approaching the market, while creating a balance
between its corporate and consumer business.Epson is traditionally
stronger in the consumer segment, though Alvarez said the companyÂ’s
revenues for fiscal year 2005 showed little difference between both
market segments.The company is targeting to increase its revenues for
fiscal year 2006 to P1.7 billion. Alvarez, however, expects sales in
the first quarter of its current fiscal year to be “not as good” as
the previous year.“April, May and June are traditionally lean months.
It’s been hard to hit our target since it’s the opening of a new school
year and spending is prioritized elsewhere,” said Alvarez, noting that
Epson’s sales usually start peaking in the middle of the second and
third quarter.IDC predicts the total printer marker this year to shrink
by more than 12 percent from 524,000 units in 2005.“We’d like to focus
more on revenues and profitability not market share. Even if our share
drops by a few percentage points, our focus is on total value for
costumers,” Alvarez said.Since last year, HP has been aggressive in
marketing its consumer products, including its printer line. Its
marketing blitz includes trade-in schemes and bundling its printers
with other devices such as PCs and digital cameras.Alvarez himself
acknowledged that HP has been aggressive in becoming more competitive
in terms of price points but maintains Epson’s customer-focused
stance.For his part, Nakamura said Epson will analyze the local
consumer market to see how the company can address growth opportunities.

[Author]

July 31, 2006 at 2:09 PM