STOP The Chinese Toner Aftermarket Industry Now, Do Not Let Them Win!

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Date: Thursday March 10, 2016 11:38:03 am
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    STOP The Chinese Toner Aftermarket Industry Now, Do Not Let Them Win!
    Levelling in progress: Do not let them win!
    By Volker Kappius, COO of Delacamp

    If there is a misbalance you need to convert it into a balance. This is exactly what the Chinese Imaging Aftermarket industry has done to the monochrome cartridge market and is now actively trying for the color cartridge market as well. And in doing so, they demonstrate that they sure know the art of warfare. They team up with their enemies without them noticing.

    It is understood that the quality level is different between the US and Europe on the one side and the Chinese Aftermarket Imaging market on the other side. One would expect that this misbalance is being eventually levelled by an increase of the Chinese quality to match the US and Europe level. But this would take much too long. What is needed by the Chinese suppliers is to speed up the process. And this is easiest done by lowering the quality level in the more mature markets like the US and Europe. This is being done by offering lower quality components and toners at close to dumping prices in these target markets.

    These low prices can be seen as an investment which yields two advantages: Firstly, the use of lower quality components and toner, if used, lowers the overall quality level of the remanufactured products in the target market. Secondly, the feedback from the remanufacturers who are using these cheap and lower quality components and toners will help the suppliers of these component and toners to increase the quality level of their products.

    And since the Chinese Compatible and Remanufactured cartridge industry is the biggest customer of the suppliers of these components and toners, this increased quality level will of course become available to the Chinese Compatible and Remanufactured cartridge industry thus increasing their quality level as well.

    Once the quality level in both markets is close to being equal, the low cost cartridges will take over the market almost completely. This is just what we are seeing with the low ppm monochrome cartridges today. If the tempting low price offers for components and toners for color cartridges are being used more and more, we will see the same with the color market. Because color yields the biggest potential for our industry the Chinese suppliers have kicked in the Turbo by buying Static Control thus speeding up the process through SCC$B!G(Bs distribution network and brand creditability.

    And what will be even worse for the genuine quality oriented imaging remanufacturing industry is the fact that the likelihood of quality suppliers dropping out of the market is much higher if they see that quality is no longer appreciated but that it is only price that counts. This will speed up the leveling process even further.

    If you do not want this to happen, please keep on supporting the independent and quality oriented suppliers of Components and Toner like Delacamp.

    DELACAMP Aktiengesellschaft
    Located in Hamburg, Germany We are a leading supplier of components to the remanufacturing industry as well as components and spare parts for copier machines worldwide. For more Information visit our website at http://www.delacamp.com

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