Toner News Mobile › Forums › Latest Industry News › *NEWS*CARTRIDGE MARKET SET FOR BIG CHANGE
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AnonymousInactiveCartridge market set for big change
Refill market to undergo dramatic shift as retail giants take over, says research firm report.
Retail
cartridge-refilling franchises have proliferated over the past two
years, but analysts claim that office supply superstores such as Office
Depot and OfficeMax, along with drugstore chains such as Walgreens,
will dominate the retail refilling landscape by 2009.An industry
research report reveals that the retail giants will account for 62
percent of cartridge-refilling locations in North America in less than
three years’ time, a staggering 55 percent increase from 2005.What’s in
Store for Retail Refillers in North America is a comprehensive report,
released last month by Lyra Research, covering retail toner and ink
cartridge refilling. In addition to forecasting the size of the market,
the report includes the results of approximately 40 in-depth interviews
with owners of independent refilling stores, executives at several
major franchises, ink and toner cartridge remanufacturers and suppliers
as well as other industry experts.Lyra Research believes that retail
ink and toner cartridge-refilling franchises such as Caboodle
Cartridge, Cartridge World, Island Ink-Jet, and Rapid Refill Ink will
continue to open new stores at a rapid pace over the next few years as
the entire cartridge-refilling market grows, but their share of retail
locations will decrease from 62 percent in 2005 to only 29 percent in
2009.Retail cartridge refillers are widely regarded as the latest
threat to the lucrative imaging supplies business of printer OEMs.
These firms have been successful in tapping into the apparent
frustration of businesses and end-users with the high cost of OEM
inkjet and toner cartridges. As a result, cartridge refilling services
at retail level have grown rapidly in number in recent years.These
services offer consumers and businesses a low-cost alternative to
purchasing replacement cartridges. Some outlets also offer a
maintenance service, convenient pick-up of empty cartridges and
delivery of refilled cartridges as well as other support services.Their
target customers are consumers and small businesses interested in
saving money on ink and toner supplies, and willing to try something
new.At the moment, there are three main types of retail refillers
operating in North America. First are dedicated retail refilling
franchises, second, independent refilling retailers and, third, chain
stores offering refilling services.And while some of these businesses
refill toner cartridges, the majority of retail cartridge refillers
predominantly deal with inkjet cartridges.The Lyra report claims that
retail refillers will have a greater effect on the aftermarket than OEM
cartridge sales although the dedicated refill franchises will
increasingly have a smaller part in a bigger market.It forecasts that
the number of refilled inkjet cartridges sold in North America through
retail refillers – independent stores, chain stores and franchises –
will grow from seven million cartridges in 2005 to 40.4 million in
2009.But the report urges caution and for an understanding of the
cartridge-refilling market’s size and its degree of saturation, which
is crucial for location selection and achieving profitability.”The
explosion of franchised refill stores over the past two years
demonstrates the frustration of businesses and consumers with the high
cost of OEM inkjet and toner cartridges, and they are looking for
inexpensive alternatives,” says Tom Baratz, an industry consultant in
Lyra Research’s Custom Research and Consulting Group.”Large chain
stores that enter the refilling market have the infrastructure and
marketing engine already in place to become major players quickly.
Consumers also enjoy the convenience of refilling cartridges while
shopping for other items, rather than making a separate trip to a
franchised refill shop.” -
AuthorDecember 4, 2006 at 11:03 AM
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