INDIA:8% TO 15% OF CARTRIDGES ARE GREY MARKET/COUNTERFEIT

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INDIA:8% TO 15% OF CARTRIDGES ARE GREY MARKET/COUNTERFEIT

 user 2008-08-01 at 2:36:44 pm Views: 79
  • #20029

     http://www.business-standard.com/india/storypage.php?autono=329477
    Printer cartridges: No more a peripheral issue
    AUG 08 Sandwiched between counterfeiters and a grey market on the one hand and re-manufacturers (cartridge refillers) on the other, printer Original Equipment Manufacturers (OEMs) are gearing up for these challenges.The grey market has already eaten away 8-15 per cent of the collective market share of OEMs over the last five years. Industry estimates put the size of the organised industry, including printer consumables like cartridges and toners at Rs 1,500 crore in 2007, and the unorganised grey market at double this figure.A recent Garner paper titled ‘Cartridge Wars Heat up in India’ notes the price-sensitive nature of the Indian customer. It also documents how refilled cartridge suppliers play on the cost-sensitivity of the Indian customers.

    OEM retail staff say that while a refilled or remanufactured colour inkject cartridge can sell between Rs 100 and Rs 200 apiece, the original hardware is imported and comes at a price tag of Rs 250-500 with a guarantee.Uday Bhat, general manager, (IT division), Samsung India Electronics, says that even while targeting key growth segments like the SME and SoHo markets, the $68-billion giant is recognising the problem of cheap, fake cartridges flooding the market.The company is tieing-up with legal firms to monitor compliance with manufacturing and branding regulations among resellers, and with channel partners too to educate customers directly on guarantee issues and the environmental impact of using discarded cartridges.Market leader HP, on the other hand, has turned its attention to the corporate segment which is more open to legitimate printing solutions. Canon, with 2,300 retailers can ill-afford to ignore the SME and SoHO segments which are vulnerable to counterfeit cartridges and fly-by-night refilling operators.The sale of aftermarket supplies has been a key revenue stream for printer OEMs, but the emergence of organised refillers and remanufacturers such as Cartridge World will erode their profits. Besides counterfeits, OEMs also need to address ways to reduce the price gap between remanufactured and original cartridges, say industry experts.