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 user 2005-08-10 at 11:27:00 am Views: 84
  • #12348

    China’s Ink Jet Cartridge Market:
    The Aftermarket Advantage

    Ink jet printers and MFPs offer a compelling
    combination of low price and high-quality color capability, making
    ink jet the dominant printing technology used
    worldwide. In emerging markets such as China,
    ink jets are especially popular. Chinese ink jet hardware and supplies revenue is expected to
    climb from $2.4 billion in 2004 to $4.7 billion in 2008 , a 20
    percent CAGR. Over that forecast period, revenue from sales of
    ink jet media in China will grow at a 23 percent
    CAGR, and
    ink cartridge revenue will grow at a
    CAGR of 21 percent. Chinese
    ink jet hardware
    revenue will increase at a 12 percent CAGR. Therefore, as in most other world
    regions, Chinese
    ink jet hardware represents a
    solid business opportunity for vendors, but
    ink jet supplies represent an even greater
    opportunity. Looking at this data in percentage terms shows that
    ink jet supplies accounted for 67 percent of the
    revenue opportunity in China in 2004 but will account for 74 percent of the
    opportunity in 2008.

    Aftermarket players in China’s ink jet cartridge market have a distinct advantage
    over aftermarket vendors in more developed regions of the world. In addition to
    being relatively immature, the Chinese
    ink jet
    cartridge market is unique in that many aftermarket players are already well
    established in China as export companies. Now these vendors are positioned to
    take advantage of the domestic
    ink jet printer
    market as it grows by offering reliable cartridges at lower prices than those of
    the printer OEMs. In contrast, in more developed regions, the aftermarket
    industry did not begin to aggressively market alternatives to OEM
    ink cartridges until after the printer OEMs had
    already gained significant mind share with customers.

    It is
    no surprise that printer and supplies vendors want to cash in on the booming
    Chinese economy. Over the last three years, China’s economy—the second largest
    in the world—has expanded by more than8 percent.