*NEWS*CASHING IN ON PRINTING SUPPLIES

[Anonymous]

“Honey, can you pick up milk, bread and a cartridge?”

Mass Merchandisers Cashing in on Printing Supplies Recent CAP Ventures research indicates that the strongest source for purchasing printing supplies after office superstores is Mass Merchandisers, which represent 35% of all purchases. Lower Prices, packaging, and marketing efforts were the main reasons for the upward growth of this channel. Source: Trends in Home Printing, CAP Ventures Traditional channels continue to be the main push behind supplies, but alternative channels are catching the eyes of many print manufacturers. The price of replacement inkjet cartridges is sometimes more than the initial cost of the printer, and in the hurried lifestyles of today’s consumer, convenience and price are often the most important factors when purchasing supplies. Alternative channels can accommodate consumers’ demands. With so many retail formats to choose from, many consumers are opting to try them all. Nearly one- third (31%) of households shop in 29 or more retailers or retail channels per year. This opens up many opportunities for manufacturers. In CAP Ventures’ new white paper entitled Chains & Channels: Supplies Presence in Alternative Channels, analysts focus in on the top chains in each alternative channel category and evaluate the sensibility and effectiveness of these channels in selling printing supplies. The alternative channels discussed in this report are: Computer superstores Consumer electronic stores Convenience stores Drugstores Mass merchandisers Warehouse clubs Craft Stores Grocery Stores “Depending on the willingness of a vendor/manufacturer to participate in alternative retail channels, the success will be commensurate with the commitment and flexibility of the participant,” commented Cathy Martin, an Associate Consultant for CAP Ventures. “Trial and error is a definite part when choosing an alternative channel, and what once didn’t work may become an exciting new opportunity.”

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March 5, 2004 at 10:37 AM