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South-East Asia SMBs Set to Spend US$490M on Printers in 2006
Singapore
— September, 2006 — Small and medium businesses (with 1-999 employees)
across key countries in South-east Asia are on track to invest more
than US$490 million on printers this year. South-east Asia includes
Singapore, Malaysia, Thailand, Indonesia, Vietnam and Philippines.
Emerging markets in this region, especially Indonesia and Thailand,
will account for more than half of the spending, according to the
latest study by Access Markets International (AMI) Partners, Inc.“To
thrive in an increasingly competitive climate, SMBs need to choose
systems that can deliver results efficiently at a low total cost of
ownership (TCO),” says Cindy Tan, Singapore-based analyst at
AMI-Partners. “With printer prices declining, the increase of color
printer sales among SMBs is growing. Medium-sized businesses (100-999
employees) are recording higher printer penetration han their small
business (1-99 employees) counterparts.”Printers that SMBs buy include
MFPs (multifunction printers), single-function laser printers, inkjet
printers, and dot-matrix printers. Medium-sized businesses in
South-east Asia are opting more for MFPs and document management
systems. “More than 50% of medium-sized businesses in Singapore and
Malaysia are using MFPs and document management systems that have
networking, copier/printer with collating and stapling features,” Ms.
Tan says. “In addition, more than 75% of medium-sized businesses in
Singapore and Malaysia are using single-function color laser
printers.”Of the total SMB printer spending, approximately 75% comes
from small businesses. This is despite the fact that the average small
business spending on printers is lower than that of medium or large
businesses. Small businesses tend to purchase lower cost items such as
inkjet printers or monochrome laser printers. “Many companies are also
examining the feasibility of leasing options to manage capital costs,
with a small percentage looking at managed print services,” Ms. Tan
adds.As managing the costs of consumables is also a key concern for
SMBs, it was surprising that more than 66% of the SMBs in South-east
Asia use branded printer cartridges – as opposed to cheaper compatible
printer cartridges. This can be attributed to the effectiveness of many
vendors’ “buy original” campaigns, as well as the lack of awareness
regarding compatibles among most SMBs in the region.Resellers and
retailers continue to play a significant key role in sourcing for
printers, with more than 50% of SMBs in South-east Asia purchasing
printers through these channels. Strong partnerships with channels are
definitely essential for vendors aiming to gain mind and market share.
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