*NEWS*CONTINUOUS INK CARTRIDGES PATENTED

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Exports, patented ICs key to averting competition
Taiwan’s Avcolor developed Color Fairy III continuous ink cartridges, which contain 90mL of ink per color container.
Makers thwart sliding demand through reinforced export capability, models with enhanced features and use of in-house designed ICs.
In spite of the growing competition, slimming profit margins, and increasing adoption of laser printers that are slowing down the growth of the ink cartridge industry in Greater China, makers persist in expanding their export and R&D capabilities. There are more than 20 small and medium-scale suppliers of ink cartridges in Taiwan. Some makers, such as Winsom International Co., develop their own ink and upgrade R&D and quality control standards to match the quality of original brands. Other makers, including Avcolor Technology Co. Ltd, design their own ICs.
To counteract a downtrend, Taiwan makers are working to enhance product features such as improved water and light resistance, and the release of more niche products such as invisible ink, fluorescent ink and monochromatic ink.
Hong Kong has about 15 makers of compatible ink cartridges, most of which are also in the cartridge remanufacture business. However, only five of them are considered major players in the local market. Hong Kong companies engaged in this line face fierce competition mainly from mainland China makers. When the concept of compatible ink cartridges was first introduced, they cost 30 percent to 40 percent less than the original branded cartridges, but the market has since become a high-volume, low-profit industry.
After the fast surge and maturation of ink cartridges in 2005, the mainland China market seemed poised for a downward trend due to the rising popularity of laser toner cartridges. In 2005, mainland China makers shipped about 600 million ink cartridges, half of which were consumed overseas. This year, makers expect production to grow to 700 million units with half of them exported.
Small companies in the mainland are struggling with the competition. Most makers have cut profit margins and strengthened internal management to keep operation costs low.
After the fast surge and maturation of ink cartridges in 2005, the mainland China market seemed poised for a downward trend due to the rising popularity of laser toner cartridges. In 2005, mainland China makers shipped about 600 million ink cartridges, half of which were consumed overseas. This year, makers expect production to grow to 700 million units with half of them exported.Small companies in the mainland are struggling with the competition. Most makers have cut profit margins and strengthened internal management to keep operation costs low. 

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April 6, 2006 at 11:23 AM