INDIA:8% TO 15% OF CARTRIDGES ARE GREY MARKET/COUNTERFEIT

[Anonymous]

 http://www.business-standard.com/india/storypage.php?autono=329477
Printer cartridges: No more a peripheral issue
AUG
08 Sandwiched between counterfeiters and a grey market on the one hand
and re-manufacturers (cartridge refillers) on the other, printer
Original Equipment Manufacturers (OEMs) are gearing up for these
challenges.The grey market has already eaten away 8-15 per cent of the
collective market share of OEMs over the last five years. Industry
estimates put the size of the organised industry, including printer
consumables like cartridges and toners at Rs 1,500 crore in 2007, and
the unorganised grey market at double this figure.A recent Garner paper
titled ‘Cartridge Wars Heat up in India’ notes the price-sensitive
nature of the Indian customer. It also documents how refilled cartridge
suppliers play on the cost-sensitivity of the Indian customers.

OEM
retail staff say that while a refilled or remanufactured colour inkject
cartridge can sell between Rs 100 and Rs 200 apiece, the original
hardware is imported and comes at a price tag of Rs 250-500 with a
guarantee.Uday Bhat, general manager, (IT division), Samsung India
Electronics, says that even while targeting key growth segments like
the SME and SoHo markets, the $68-billion giant is recognising the
problem of cheap, fake cartridges flooding the market.The company is
tieing-up with legal firms to monitor compliance with manufacturing and
branding regulations among resellers, and with channel partners too to
educate customers directly on guarantee issues and the environmental
impact of using discarded cartridges.Market leader HP, on the other
hand, has turned its attention to the corporate segment which is more
open to legitimate printing solutions. Canon, with 2,300 retailers can
ill-afford to ignore the SME and SoHO segments which are vulnerable to
counterfeit cartridges and fly-by-night refilling operators.The sale of
aftermarket supplies has been a key revenue stream for printer OEMs,
but the emergence of organised refillers and remanufacturers such as
Cartridge World will erode their profits. Besides counterfeits, OEMs
also need to address ways to reduce the price gap between
remanufactured and original cartridges, say industry experts.

[Author]

August 1, 2008 at 2:37 PM