National Supplement on Printers,July 2012
Printer market witnessed a decline of 13% in unit terms in H2 FY 2011-12 as compared to h1 FY 2011-12.
Follow us on www.twitter.com/dqweek www.dqweek.com Catch the next National Supplement on Printers with DQ Week - 30th July issue. For Ad bookings write to email@example.com or call 09717194826 July 30-Aug 5, 2012 www.facebook.com/TheDQWeek www.twitter.com/dqweek Chennai delhi Kolkata Mumbai National Supplement - Printers A Stuttering Print Run July 25, 2012: The India Printer market saw growth till festive season 2011, however post festive market was affected by global economic market scenario and shortage of key components due to the devastating Thailand floods. Distributors' working capital woes due to delay in payments from the next level of the distribution chain added to the difficulties. This affected the distribution dynamics of printers as well. As per CyberMedia Research India 45-City Monthly Printer Market Review, 1Q 2012, May 2012 release; the overall India A4 Printer market witnessed a decline of 13% in unit terms in H2 FY 2011-12 as compared to H1 FY 2011-12. Inkjet printers were hit hard recording a 22% fall followed by DMPs with a 10% decline and laser printers with a 6% fall. In spite of slow market sentiments, the laser multifunction printer category saw growth of 13% in H2 FY 2011-12 as compared to H1 FY2011-12. For FY 2011-12, HP continued to be the overall market leader with a 57% share in terms of unit shipments, followed by Canon with 19% and Epson with 12%. Samsung recorded a 6% market share while other small vendors collectively had a market share of 6%. In the Dot Matrix Printer (DMP) category Epson led the rally with a 49% share of unit shipments, followed by TVSe with 37% and WeP with 13% during FY 2011-12. However, over the years this category is attaining stagnancy due to limited expansion of the user segment. In the inkjet printer category, market leader HP had a share of 72% in terms of unit shipments during FY 2011-12, followed by Epson with 14% and Canon with 11%. HP also emerged as the leading inkjet single function (inkjet SF) printer vendor with a 71% market share in terms of shipments, followed by Epson with 20% and Canon with 9%. For the inkjet multifunction printer (inkjet MFP) market, HP was the leader with a 72% market share in terms of unit shipments during FY 2011-12, follow by Canon with 12% and Epson with 11%. In this space, Brother was observed to be slowly picking up market share. Continuous Ink Supply (CIS) based systems like L100 and L200 provided litmus to Epson's growth. These models were well accepted by market due to low per page print cost. Canon witnessed a shortage of IP 2770 in the inkjet SF printer segment in H2 FY 2011-12, whereas their new model, the E500 in the inkjet multifunction printer segment helped Canon increase sales due the low cartridge cost. In the India laser printer category, HP led the market with a 53% share in terms of units sold during FY 2011-12. Canon stood at second spot with a 32% Indian Printer Market 2012 share followed by Samsung at 11% and others with a combined share of 4%. In the laser single function (laser SF) printer market HP dominated the market with a 52% share followed by Canon with 37% share and Samsung with 7% share in terms to units shipped. In the laser multifunction printer (laser MFP) market, HP led the race with a 54% market share in terms of units shipped during FY 2011-12, followed by Dissecting the Indian Printer Market 1% 5% 2% 7% 3% 5% 7% 2% 58% 8% 2% HP Samsung Epson Ricoh TVS-E Xerox WeP Canon Dell Lipi Data Systems Others (Revenue (in Crores) 6000 5000 4000 3000 2000 1000 0 � Revenues include those accrued from managed print services (nearly 75% in case of HP) � HP overall has the lion's share but the likes of Canon and Epson are No. 1 in laser MFDs and Dot Matrix printers. � Thanks to a huge surge in its existing channel ecosystems, Ricoh is starting to make grounds � Lipi Data Systems, apart from its own printers, resells Brother printers too. Source: The DQ Week estimates Canon and Samsung having almost equal shares of 20% each. Other vendors accumulated a combined share of 6%. HP experienced shortage of flagship models in the laser MFP category in the first half of financial year 2011-12; the vendor also witnessed shortage of its laser SF flagship model, the 1020plus. Samsung's market presence was strengthened by the launch of its chipless toner based printers ML1676 and SCX-3201G. Other vendors like Panasonic, Brother etc. also witnessed a growth in their business. The laser MFP category in the India A4 printer market saw new entrants such as Epson and Brother. Multifunction printers saw increasing acceptability in the home, SMB and Retail segments. SMBs prefer a mix of single function and multifunction printers to attain overall printing solution efficiency. As per the CyberMedia Research India 45-City Monthly Printer Market Review, 1Q 2012, May 2012 release, the share of MFPs increased by 3% versus SF printers in H2 FY 2011-12 as compared to H1 FY 2011-12. The decreasing price gap between single function and multifunction printers in the same technology space also prompted a set of customers to move to the latter category. The market witnessed a price increase of 6% to 12% by almost all the vendors in May 2012 across printer categories, primarily due to the rising global crude prices and the sharp decline in the value of the Indian Rupee vis-�-vis the US Dollar. CyberMedia Research expects the market to pick up slowly in the coming months as different professional institutes enter into their academic sessions and the commencement of the festive season. Distributors are also expecting growth in business from the corporate and government segments. Narinder Kumar, lead analyst, printing products and solutions, IT channels research, CMR InfoTech Practice Your one stop solution to printing needs Space Saving. Power Saving. Easy-to-use. Multi-functional. The all new range of Printers from Panasonic. It's everything you want it to be. 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HP is partnering with channel partners to address the SMB and mid-market space to offer its managed print services. In fact, we are targeting about 350 listed mid-market accounts for MPS in metros including Mumbai, Delhi, and Bengaluru, and plan to extend the services in a phased manner to other tier-1 and 2 cities. Through channel partner solutions selling program, HP recently launched printing solutions for SMBs and mid- market customers. The company also simultaneously developed the channel partner solutions selling program to help train channel partners in selling and implementing the solutions. HP has also included its printing solutions as part of its Partner Managed Print Services (PMPS) customer engagements. It is HP's constant endeavor to design solutions for easy adoption by the SMB market and delivery through its channel partners. As a commitment to help partners sell the solutions better, HP provides free pre-sales technical service (includes on-site coaching in some areas), sales tools on how to position and sell solutions, face-to-face sales and technical training and certification, post-sales support and upgrades. Earlier this year, HP organized PAB (Planet Advisory Board) meeting for its top 25 partners from India with the prime agenda to share HP's strategy and plans for growth along with an open discussion on the challenges faced by the partners. The whole idea was to engage partners and discuss on how they can work together with HP for creating a win-win situation for both the parties. The board meeting also provided HP with feedback on the challenges faced by the partners. HP not only invests a lot on training and developing the channel partners but also awards and recognizes their efforts timely. Although we have been awarding and recognizing contributions of our channel partners and representatives (sales) from the past many years, this year we took a step ahead with hosting a special event for them in China. 25 out of India's leading partner representatives (sales) in different categories were awarded by HP � IPG senior leadership at the event. The partner representatives (sales) were also offered a paid 2 day holiday in China. Apart from recognizing the partners' efforts, these steps have also helped us retain them in the long run, which was definitely a challenge earlier. As part of HP's initiative for rewarding partner representatives, HP gives them the advantage to accrue points on each unit of printers, MFDs and solutions sold. The points thus accumulated can be reimbursed easily. As the market leader, we remain excited and confident about the Indian market opportunity for printers in the year to come with a steady growth across all printer categories. This growth is expected to be driven largely by the latest generation of printers that bring unprecedented affordability (lower printing cost per page), energy efficiency, and mobility (through technologies like HP ePrint) to home consumers, SOHOs, small, medium and large businesses. For example, our latest line-up of Ink advantage printers brings highly affordable, HP-quality printing to home with a cost per www.dqweek.com Nitin hiranandani, director, printing systems, pps, hp india ith over 6,000 partners and 4,000 retail outlets across 178 cities and towns, HP has a strong presence across India. As per IDC figures available for Q1, 2012, HP maintained a 64% market share in India for Inkjet printers and 49% for Laser printers. There are many factors which have helped us fuel our growth and increase our sale of printers in the Indian market. Besides being the global leader in the Inkjet and Laser printing for over 25 years, HP offers industry's most comprehensive portfolio of inkjet and laser printers to match every customer's need and has led the imaging and printing innovation with first-to-market features like ePrint, web-connected printers and print applications. HP also has a strong and robust distribution, service and support network across India, especially in class B, tier II and tier III cities, including 342+ service locations at over 163 cities. Moreover, HP originals are available at 1800+ outlets nationwide. The company also conducts regular channel initiatives. Partner managed print services customer engagements is where channel partners with their service skill sets and large access to SMBs are positioned to cater to Rajeev Tewari, director, canon csp group O ur plan to taking printing solutions to regional markets has greatly benefited our growth. Backed by an extensive channel network in tier 2 and 3 markets, our product sales are consistent and growing by leaps and bounds. On the range of products, Canon doesn't operate in the dot matrix category. In the inkjet segment where Canon is present our contribution to the overall market in 2010 and 2011 were 14% and 13% respectively. In the laser page as low as 75 paise. We are also excited about the growth opportunities in the tier-II and III cities across India. As the imaging and printing industry and market leader, we at HP believe that traditional definitions of printing are rapidly evolving with the explosion of digital content, combined with the exponential increase in people's ability to make and share it. We believe that the following will be some of the key driving forces and trends that will define our presence in the Indian imaging and printing market going forward. We will continue to deliver cloud-led and web-connected innovation that allow people to seamlessly integrate print into their digital lives no matter where they are. Also, we are catering to the students and home-users' need to print a considerable volume of study materials with our HP Ink Advantage printer series, which presents an innovative solution with high-capacity ink, allowing for high-quality and reliable printing at affordable prices. With the SMB market growing in India, we at HP is helping SMB customers reduce costs, improve their environmental impact and drive additional value to their customers with products and tools that are easy to implement and use. HP is also extending its managed print services (MPS) to SMBs through channel partners. We are targeting about 350 listed mid-market accounts for MPS in metro cities, and plans to extend the services in a phased manner to other cities. HP considers its channel partners as its extended family and has industry-leading channel enablement programs and policies for its channel partners. Some of the key characteristics of HP's channel-enablement programs are direct engagement model with tier-III channel partners, new programs like Partner Managed Print Services are designed to help skilled partners move up the value chain and offer solutions and services on top of products to their customers, and grow their profitability and from time to time, HP offers innovative promotions and initiatives to help its channel partners sell better, backed by strong marketing support. Ram prasad, deputy gm, consumer product, epson india D uring the last financial year, we sold 55-60% of dotmatrix printers, 22-25% of ink-jet printers and 3-5% of laser printers. In the last four years, Epson has been launching a wide range of products and their availability has been increased to 30-40%. Epson has also retained 90-95 % of the partners in the last ten years. As far as the percentage of revenue is concerned, the lion share of 70% comes through the channel partners and 30% comes through the corporate sales. Region wise, Epson has a greater presence in the South and Western parts. While segment our business contribution has been 31% in 2010 and 2011. India's laser printer business accounts for 6% of the global revenues. Canon runs various exclusive programs for channel partners which enable us to build a connect with them and also educate them about our products and technologies. First is the channel dialogue which is a platform where partners can come and discuss with us on their issues and suggestions to increase business. We also train partners and their sales people on our new products and technologies. Wings of glory is one such program conducted annually, under which we sponsor top channel partners along-with their spouses for a trip to exciting destinations abroad. The program is a demonstration of Canon's commitment to reward its top 50 partners across its channels across product categories. Canon also has its leadership summit, an annual event held to celebrate and recognize the success of Canon channel partners. The three-day annual event is held with the objective to highlight the critical role the channel partners played in bringing products to the mainstream Indian markets and in further expanding the market to small towns and cities in India. Canon is always keen on keeping the partners informed on the latest technologies in the market. OIC (original Ink Center) is an initiative to partners to explore and sell canon genuine inks and toners. CPCP (Canon privilege corporate program) is an initiative for partners to tie up with their key accounts from supply of canon genuine ink and toner. Channel partners are the backbone for our success in the Indian market. Their dedication in partnering with us to build the Canon brand has been exceptional. 85% our overall sales in the segment happen through channel partners. Our focus is to increase the inkjet business and aim at 40% market share by 2015 which is currently at 18% for Q1 2012. For laser we are focusing on our mid and high range and increase our presence in enterprise and government vertical. Our key vertical contributors are home segment for our Inkjet range of product and SME/SOHO for laser products. We are focusing highly on the photo segment and large format vertical for our Inkjet products and corporate and government for our laser products. We also focus our energies on the large format retails, system integration, Canon Image square (an exclusive canon franchisee retail format), institutional sales and enterprise sales which contributes to the remaining 15% of our total sales. We plan to launch 20 new printers this year in the Inkjet and laser category. This will help our partners leverage more as these models boast of high quality technology which need to be compatible with other IT peripheral products. Formation of separate Laser division and Inkjet Division will bring focus in both the product line and we will be able to support our partners more closely. In the existing business environment, it is highly essential to work with channel partners to ensure profitability for both Canon and the channel. Our BTL spends on channel fraternity stands close to 6-8% of our total sales revenue. We emphasize on partner's profitability as one of our priority followed with quality products , latest technology and efficient services with our new initiatives of CRM in second half of this year. With this, we will be able to bring more loyalty amongst our customers which will result in higher sales of machines and consumables for our partners and for Canon . 30% of the revenue comes from South and West, 25% of it comes from the North and East accounts for 15% . However, vertical-wise it is a 50-50 share between the consumer (SOHO, SME, SMB and small time business units like photo studios) and commercial segment (education, retail, banking and finance etc). One of the key successes for Epson in the recent days was the launch of the n-series of printers addressing the cost-concerned Indian population. Epson has 6000 ECC (Epson certified channel), 225 EAP (Epson Accredited Partner). Also, India, as a country holds 5% share in Epson's global revenue. On the channel events, Epson has conducted n-dimension programmes (for hardware channel parters) in 150 cities and n-solution programmes (for the System Integrators) in 15 cities. The three segmentation of Epson printers are n-series for the cost-effective, K-series for the innovation and work-force for the networking-type of printers. Every year, Epson spends 10-15% of its total revenue for the marketing campaigns. The company also assures that the partners make a margin between 8-12%. WiFi, multi-function, networking, e-mail, air-print, and bluetooth are some of the latest technologies, Epson has adopt for its printers. vipin tuteja, executive director, technology, channels and international business, xerox india X erox works on a partner engagement model which ensures that the channel partners are well trained and are equipped with the appropriate sales tools to enable them to sell Xerox products and services. Xerox provides adequate support to channel partners in terms of training, learning support, marketing support, co-activities and events, pre and post sales support etc. The partner loyalty program ensures that they are rewarded on achieving their targets. We conduct roadshows for our partners showcasing our product portfolio and have introduced initiatives such as the `sales and service partner certification program' that gives them incentives on achieving their targets and provides an opportunity to make more businesses through service support and maintenance contracts. Keeping in tune with the spirit of the 2012 London Olympics, Xerox India also launched the "Xerox Olympics Challenge 2012" for its partners. The challenge provides an opportunity to the top performing Xerox partners, a chance to witness the greatest sporting spectacle, live at London in an all-expense paid trip by Xerox. We have completely realigned our go-to-market strategy and now our technology and channels business is completely distributed through channel partners. Xerox India has expanded its channel base in tier II and III cities with focus on top 200 cities and strong presence in over 25 towns. Today we have over 1000 Xerox partners nationally who are a mix of Value Added Resellers, Sub Distributors, Xerox Premium partners that cater to customers in Enterprise, SMB's and SOHO segments. Over the next few years, Xerox India will continue to expand the partner base pan India particularly in places which are still not adequately covered by us. The company offers unrivaled print quality, reliability, speed and productivity through more than 20 years of technology innovations. The latest technology in the toner segment is the Emulsion Aggregation (EA) toner which is a breakthrough technology for producing black and color toner. Another energy efficient technology that has been incorporated by Xerox is the solid ink, a proven sustainable color printing technology. Solid ink printing produces 90% less supplies waste than laser printing, giving it a much lower environmental impact. The Xerox ColorQube Multifunction System based on the Xerox patented Solid Ink technology offers flexible print speeds ranging from 30 ppm-85 ppm color and provides an opportunity for SME's and corporate India to create impressive in-house color documents at 50p per print . As part of the Go-to-Market strategy for 2012, we will continue to strengthen our presence in the top 200 cities and increase our engagement with our partners and customers to maximise their benefits in terms of better returns. Xerox has always been at the forefront of product and technology innovation. We were among the first in the industry to launch Hi-Q LED enabled printers and showcase revolutionary solid ink technology. We are further strengthening our Phaser, Workcenter, Docucolor and iGen range of products and digital presses and will launch a new range of office automation devices and digital production equipments in 2012. We are also extremely bullish on the Indian print industry and the graphic arts segment as it continues to grow at a stupendous rate. We have gained a lot of momentum in this business in 2011 and we are positive about carrying forward this momentum in 2012 with a range of newly launched products and further strengthen our leadership position in this segment. We, at Xerox India have always shared a great rapport and relationship with our partners. The growth has been mutual; we have grown and expanded in India and have helped them grow in their businesses. Xerox service representatives encompass more than 650 cities across India. www.dqweek.com pn r ie nt es rs w v e n d o r c h a n n e l s t rat e g i e s range of Rs. 6,000 to Rs. 2,50,000. With the launch of advanced printer models in the laser printer, multi function printer, network printer categories, wireless printers including the world's smallest laser printerML16663201 and Samsung SCX printers, the company has strengthened its position in the India market and is looking forward to grow the segment further. The Samsung laser printers offer highquality, high-speed performance along with low maintenance. The mono, laser and MFP segment is represented by a range of products which are sleek, have space-saving modern designs with amazing output power. Further these laser printers provide a simplified, highly affordable and `green' printing experience with `printelligence' features such as toner save, smart panel (enables easy trouble shooting), one-touch print screen and web printing. In this category, we also have ML-1666, the world's smallest laser printer and the SCX-3201, world's smallest laser multifunction printer. Our focus is to grow the market and cater to every need of our consumers. This clearly indicates our resolve to provide solutions for every user audience with diverse requirements. For small and medium business units, with limited space and resources, our printers take the guess-work out of IT with excellent warranty and support options. When it comes to single and multi-function printers, Dell's ongoing sensitivity to hardware prices and lowering the overall cost of printing makes our machines compelling for companies of all sizes. Dell's printer and multifunction device lineup is engineered to control operational costs and reduce the total cost of print by providing increased product reliability. Our sensitivity towards our customers' needs and their pain points has helped us increase our solutions base in India. We do not classify our focus on the basis of regions; our aim is to serve and address all our customers, regardless of any region. Dell currently has over 1,700 commercial channel partners in the Indian market. We are continuously looking for opportunities to increase our reach and are keen on working with partners who want to offer customized technology solutions. With the focus on increasing market penetration and geographical reach, channel plays a crucial role for Dell in India. We will continue with this strategy with the aim to increase reach and engagement with channel partners. Our range of printers includes powerful multifunctional features for document digitization. Also they are a robust and reliable set of printing solutions. We also have a range of budget friendly entry-class printers which are easy to use and have network connectivity. In short, there has been a lot of effort in designing this solution July 30-Aug 5, 2012 The DQ Week 3 ranjit yadav, country head, mobile and it, samsung india shishir singh, director, product marketing, dell india category which makes it very easy for our partners to sell the printers to our customers. Also, Dell is focused on solutions for business, which enables partners to offer customers solutions for all their technology and service needs. Our printers come with a bunch of value added features and advantages like Dell Toner Management System, a unique, end-to-end approach that enables you to easily use, manage and purchase supplies with delivery direct to your doorstep, Dell Printer Web Configuration Tool that helps you quickly and easily manage your individual printer through a standard web browser., Dell ColorTrack which helps reduce Total Cost of Ownership (TCOP) by monitoring and controlling access to colour printing, Dell Open Manage Printer Manager to Monitor, manage and report on the status of the network printers quickly and easily, Dell Open Print Driver which is printerdriver management made easy with single universal print driver. Some of our products include Dell 1130 and Dell 1130n (monochrome single function printers), Dell 1133(the multifunction (print, scan, copy) monochrome laser printer, Dell 1250C (world's smallest singlefunction A4 color laser-class printer will be available in the market for INR 17000 ), Dell 2230d Laser Printer (that makes light work of monochrome printing tasks), Dell 2330d/dn Laser Printer (offers fast, high-resolution output with professional quality, dual-sided printing capability). S ince innovation has been a key driver for all Samsung products, in the printer business too, our initiatives have been geared towards using technologies to make printers more compact while adding end-to-end functionalities. As Samsung printers become more feature loaded, we've ensured that the core fundamentals of accuracy and print quality are never compromised. Given the tremendous support and enthusiasm that we've received from our consumers, Samsung India plans to further scale up the business in 2012. In 2011, we focused on consolidating the printer business with a distinct product strategy, strengthened distribution channel with a sharper focus on our B2B business. The Samsung printer business is in its high-growth phase. The Samsung printer portfolio consists of a line-up of 35 across the mono and color single function laser printers and multi-function printers in the price jose antony, country manager, channel sales, tvs-e T VS-E has continuously ensured product knowledge getting disseminated to its channel by way of training programs coupled with product road shows involving its regional channel partners through its well known `Sanskriti' program. The major revenue share among the printers came from Dot-Matrix Printers (DMP) which contributes to 90% of our revenue as compared to thermal printers which hold for 10% of the revenue. The adoption of information technology and services in a significant rate in retail and transaction applications has helped the printing industry to a large extent supporting the sales of the printers. Also, the major share for TVS-E comes only through the channel partners. A lion's share of 70% emerges from the channel business for whom TVS-E conducts routine quarterly programs along with time-to- time promotional offers. Even though TVS-E does not provide region-wise revenue breakup, our products have nation-wide acceptance across customer segments and we will continue to have that presence. TVS-E products also have nationwide acceptance across customer segments and our dominance is in banking, government, retail, dairy etc. Technology is one area which TVS-E has never compromised. Bluetooth, WiFi, RoHS, and continuous improvement in speed and throughput, all these are used across printers like Direct Thermal, Impact Printers and Thermal Transfer Printers. TVS-E will continue to improve the product offerings for the customers and the channel schemes / promos that will support the partners to grow along with TVS-E products. TVS-E always follows a caring meritocracy for the partners and will continue to offer them three things, high-margin, affordable cost, and advertising support, in the coming times. Toru hasegawa, md, corporate planning and system sales division panasonic india L To Advertise in the National Supplement Contact: Arup Kumar Maiti (9999839390), Samiksha G (9967589019) ast year, out of Rs 3,200 crores revenue, the consumer durables segment business- to-business (B2B) solutions contributed 20% of it. By 2015, we expect the B2B business to be a 50% contributor to Panasonic's overall revenue. In order to deliver the finest of our product and services to our customers, we not only empower our partners adequately but also provide them with training time and again so that they can cater to each and every need of the consumers. We conduct periodic trainings for our partners and their sales teams on product and application skill sets. Panasonic has 135 exclusive brand shops pan India and we aim to open 200 more by the end of this year. While we drive sales from many verticals, SMB currently is the biggest sector bringing in business for us. And considering that the the SMB market is growing at a fast pace, we will focus on it to cater to the growing and changing demands. The company has around 1184 service centers, 32 P4 (Panasonic Premium Partner Program) outlets spread across the country and aims to open 100 outlets in 2012. Also, we have around 850 plus dealers selling our printer and supplies across India. We have about 6000 retail partners and expect it to rise to 9000 by end of FY12. We also have a strong presence of over 5500 channel partners across country. We always keep our channel partners informed of all changes that have a direct and indirect bearing on their business. Our local sales team is in constant touch with the dealers and the associations for a mutually beneficial eco-system. 4 July 30-Aug 5, 2012 The DQ Week printers Though 3 mn printers were sold last year, the overall sentiments were cautious www.dqweek.com A Sour Imprint B Swaminathan ohannes Gutenberg, the father of modern printing, no wonder, would have been astonished to see the developments in the printing industry today. According to industry veterans, overall, close to 3 mn printers have been sold in the last fiscal. The printing industry has seen a major transformation in the past few years. If one industry that has grown by leaps and bounds, despite problems like economic slowdown or dollar issue, channel partners across the country, unanimously feel that it is printing industry. As for instance, Indian railways transit 2 crore passengers every day among which 3 lakh papers are spent only on the ticket booking through its official ticketing agency Indian Railways and Tourism Corporation (IRCTC). However, when IRCTC announced that printed version of tickets were not mandatory, the move was expected to hit the printing industry. But it was not so as market leaders also feel paperless J office is yet far from real and so there are tremendous opportunities for the printer market. For small and medium businesses, dealing with limited space and resources, printers take the guess-work out of IT with excellent warranty and support options. Consumers are looking for innovative products, which are both costeffective and efficient. Indian printer market is currently witnessing a steady growth rate, wherein the demand for printers such as inkjet, dot matrix and laser printers are experiencing a significant demand. Prime reasons driving the market includes the presence of active industry verticals and the growth in content creation in India. Also, the massive PC base coupled with the declining hardware prices is primarily providing a splendid growth opportunity for the overall printer market in India. Increasing awareness and importance of printing at home are some of the factors driving the sales of printers in the Indian market. Inkjet printer sales in India felt the impact of smart phones and tablets business was down by almost 25 % in the fourth quarter of 2011. The combined serial inkjet and page printer (i.e.laser, LED and solid ink), copier and multifunction product (MFP) market in India fared slightly better, sales totaled to 641,274 units in the fourth quarter of 2011, a 5.9% decline compared to the fourth quarter of 2010, according to the latest report by Gartner The fourth quarter of 2011, did not meet expectations as compared to the previous quarter according to a research analyst at Gartner. Inkjet and page products registered mixed sales as organizations controlled purchasing of print devices and looked for services rather than products. The fiscal which ended recently has also shown a negative sign for printer market. Weaker macroeconomic outlook and impact on hard disk drive supply chain led to just 0.4% growth in overall A4 printer sales in India during January-March 2012. The overall A4 printer sales in India's top 65 cities crossed 5.53 lakh units during the quarter, up 0.4 % compared with 5.5 lakh units during October-December 2011, according to Cybermedia Research. Floods in Thailand during the end of last year were one of the major reasons that led to inadequate supply of hard disk drives for printers. The country is the biggest supplier of information technology hardware worldwide. Going forward, impact of the rupee gain against the dollar may also act as a dampener to printer sales in India. A weaker rupee is also exerting pressure on vendors to increase printer prices ahead of the coming festive season. This may not act as the perfect incentive to lift the somber mood of the market. While the modest demand from the domestic small and medium business enterprise base triggered a growth in the laser multi function printer category, lack of a strong consumer demand hit inkjet printer growth in the first quarter 2012. The Indian printer copier and multifunctional product (MFP) market declined 5.8 %to 6.41 lakh units in October-December 2011 as compared to the same quarter last year, research firm Gartner said. A total of 6.81 lakh units were shipped in the same quarter last year. The fourth quarter of 2011, did not meet expectations when compared to the previous quarter. HP remained the leader with 53 %market share in the fourth quarter of 2011, though it lost share by 2.7 percentage points as compared to the fourth quarter of 2010, Gartner said. Canon followed with 21.8 %market share, while Epson and Samsung followed with 9.8 %and 7.9 %market share, respectively, it added. In the A4 MFP space, which includes inkjet and page technology, HP maintained its leadership position with 52.2 %market share, followed by Canon, Epson and Samsung with 20.6, 10.9 and 8.6 %share, respectively. In the A3 flatbed copier MFP segment, Canon led the market with 24.7 %share, followed by Ricoh, Konica Minolta and Xerox with 19.4 per cent, 15.1 %and 11 %share respectively, the study said. The inkjet printers market experienced a decline of 24.9 % compared to the fourth quarter of 2010, the research said. The growing proliferation of electronic media, such as smart phones and tablets, as a means of communication also contributed to the dismal outcome. Analysing Different Printer Categories (in terms of units shipped) INKJET PRINTER CATEGORY 11% 13% Epson 49% 37% TVS-E WeP 72% 14% HP Epson Canon 71% 20% HP Epson Canon DOT MATRIX PRINTER CATEGORY SINGLE FUNCTION (INKJET SF) PRINTER CATEGORY 9% INKJET MULTIFUNCTION PRINTER CATEGORY 11% LASER PRINTER CATEGORY 4% 11% LASER SINGLE FUNCTION PRINTER CATEGORY 7% 12% HP Canon 72% Epson 32% 53% HP Canon Samsung Others 37% 52% HP Canon Samsung OVER ALL MARKET SHARE LASER MULTIFUNCTION PRINTER CATEGORY 6% 6% 6% HP 20% HP Canon 54% Samsung Others 12% 57% 19% Canon Epson Samsung Others 20% Source: cYBERMEDIA RESEARCH (cmr) 6 R.N.I. No: 66909/97 (Posting Date: Mon-tue every week, Post at LODHI ROAD H.P.O.) DL(S)-17/3158/2012-14 Licensed to postWPP, U(C)-220/2009/11 July 30-Aug 5, 2012 The DQ Week pr nt er ni e w ss www.dqweek.com NEW NEW NEW NEW NEW SL-2029 SL-2030 SL-2031 SL-2032 SL-2033 UL 1007 UL 1008 UL 1009 UL 1010 UL 1011 UL 1012 3D UL 1020 3D UL 1021 3D UL 1022 ULWS 1020 ULWS 1021 ULWS 1022 Cabinets, Optical Mice, Headphones, TV Tuner Cards, Speaker, Spike Arresters, SMPS, UPS & more! Agra - 6453125, 4041027, Ahmedabad - 64508450, 26851663, Amritsar - 6450186, Aurangabad - 645 7141, Bangalore - 65687567, Baroda - 6595588, Bhopal 6464925,Bhubneshwar - 6510444, Calicut - 6515152, Chandigarh - 6512547, 2694932, Chennai - 64501273,28412414, Cochin - 2205051/52/53, Coimbatore - 6572160, Dehradun - 6546333, Delhi - 64734905, 26387897, Ghaziabad - 6517809, Goa - 6514657, Gurgaon - 64514614, Guwahati - 273101, Hubli - 6453123, Hyderabad - 66901598, Indore - 6510124, Jabalpur - 6457306, Jaipur - 6577844, 2280421, Jammu - 2437478, Karnala - 6450508, Kolkatta - 64517248, 22315174, Kottayam - 6452013, Lucknow - 6546333, 2286134, Ludhiana - 6512545, 6450125, Madurai - 6463839, Mangalore - 6451030, 2494355, Mumbai - 65261670/65990329, Nagpur - 6502571, 2420009, Nasik - 6450103, Parwanoo - 645108, Patna - 6453850, 273137, Pondicherry - 6530470, Pune - 65205706, 24497489, Raipur - 6538333, 4221307, Rajkot - 6593588, Ranchi - 6455499, Siliguri - 6450108, Surat - 6596267, Trivendrum - 6535433, Varanasi - 6454820, Vijaywada - 6622872, Vizag - 6590992. R.N.I. No: 66909/97 DL(S)-17/3158/2012-2014 U(C)-220/2006/08, Posted at Lodhi Road HPO New Delhi - 110002 Printed and Published by Pradeep Gupta on behalf of M/s Cyber Media (India) Ltd and Printed at Diligent Media Corporation Ltd, Plot No. EL - 201, Mahape, T.T.C. Industrial Area, M.I.D.C., Navi Mumbai - 400075 and Published From D-74 Panchsheel Enclave, New Delhi - 110017, Editor: Ibrahim Ahmad Corporate office: Cyber House, B-35, Sector 32, Gurgaon (NCR Delhi) 122001, Tel: 2384816, Fax: 124-2380694 E-mail: firstname.lastname@example.org, Editor: Ibrahim Ahmad, Chief Editor: Prasanto K Roy www.dqweek.com pn r ie nt es rs w c h a n n e l pa rt n e r p r o f i l e s s outh east west Link Computer Systems July 30-Aug 5, 2012 The DQ Week 5 Computer Exchange n.k. bothra Senthil Kumar Bismi Computers Abdul Malik Business Algorithm Reeta Budhay T he partner is dealing with leading brands like HP, Canon and sold around 1025 units of printers in the last financial year. One of the key challenges faced by the partner is the number of DoA (Dead on Arrival) of printers is increasing every month. This has also affected the brand image of both the vendors and the local partners among the customers. The total number of DoA products which used to be 4 to 5 in a year has now increased to 2 to 3 every month. The partner needs the vendors to do massive campaign attracting the end-customers directly. Even though the partner has no big plans for this financial year on printers, it intends to have wide-range of low-end printers which has the latest technologies incorporated in it. Since most of the households come with WiFi facility, the partner has planned to stock more number of printers with the feature and bluetooth. The partner is also planning to focus more on the Mac-supported printers. As far as the consumables division is concerned, the partner has enough number of supplies and ensures that no customer, who walks inside the showroom seeking a toner or cartridge, is not satisfied. Lalani Infotech L ink Computer systems is a partner from Erode and distributors for Canon printers since 2007 for Erode region. Last year was quiet good for it as it witnessed 12% growth in laser, 4% in MF and Bubblejet. Link computer systems has sold 1,800 units of printers totally among which 1,180 units of laser, 350 units of multi-function printers and 270 units of bubble jet. The partner even though deals with wide-range of products, has generated around15 -18 % of the net revenue from printers. As per the policy of Canon, the inkjet and laser division had been divided. In this fiscal, the partner expect to have an 60% growth in Inkjet and has planned to focus more on educational institutes and students. Regarding the support from the vendors, the partner expects them to be more keen on local advertisements and activities and product demos for the sales promotion. According to the partner, inkjet Cartridges sale have been increasing month after month, as compared to toners. T he Kumbakonam-based partner deals in Canon and HP products in the delta districts of Tamil Nadu. According to the channel, the region, which followed handwritten bills,is now slowly transforming into a printerfriendly place. Even though Bismi computers do not meet the end-customers, according to the partner, there are also a large number of small offices and small enterprises which has started maintaining accounts in a printed format are mushrooming everyday apart from the home segment which is already good there. The expectation from the customer from this region is to get maximum output from the lowest cost. In this financial year, Bismi computers has planned to sell atleast 750 units from the 500 units last year. The partner has also planned to conduct dealer meetings in the region. However, the market is slow as far as original cartridges and toners are concerned. A leading distributor of central India, Nagpur based-Business Algorithm is one of the most reputed partners for HP India. Reeta Budhay of Business Algorithm said, "These days the problem is with regards to cartridges as the company has increased the prices and also with supplies. Till recent, Canon was leading the market share in that region, however, HP has regained the top spot. In terms of B.Algo, the company does about 150 units of single and AIO inkjet printers in a month, and about 300 units of laser printers per month in addition, 125 Multi Function Printers (MFP) per month in the market. Currently, the company has an annual turnover of Rs. 45 crore. In this, the printer segment contributes Rs. 4-5 crore to the kitty while consumables contribute about Rs. 5 crore. In total the entire printer related business contributes about Rs. 10 crore. north MD, Compro Computers Aditya Peripherals arun managave K. L. Lalani pankaj bandlish MD, Groovy Communication n the last 20 years, the Groovy Communications has grown by leaps and bounds. Today, the company enjoys 20 year-old partnership with a single brand i.e. HP as its platinum premier partner. It deals in all types of HP printers including HP multifunction printers, network printers, large format printers and plotters. It deals directly with large corporate orders in Delhi and NCR. Moreover, it provides satisfactory after-sales service to its customers. Presently, Groovy has a Rs 15 crore turnover, with 40% market share across the northern region in plotters. Essentially, it caters largely to sale and manage large format printers and network printing. Wherein for the sale of ink jet, laser jet and MFPs happens through its own retail showroom located in Nehru place. It sells, on an average, 100 large format printers to corporate and 350 plotters yearly. "Since we deal with large telecom and hospitals, we ensure to provide our after sales services around the clock, without any downtime," said Ashok Grover. The company also has dedicated portal for selling products online. It offers discounts and special schemes to its direct customers. Ashok Grover A L alani Infotech, a leading channel partner in East India, has done around Rs.7 crore business across the region with Rs.3 crore revenue in Kolkatta alone. One of the key factors that helped the partner is the multiple branches across the region and the reach it has with the customers. Lalani infotech deals with the key brands like Epson, Panasonic and Canon. The partner's key focus is in the SMB and SME segment which are the two key fast-growing sectors in the region. Lalani Infotech also has plans of entering into Large Format Retail (LFR) and setting up a state-of-the-art retail shop at an area of 15,000 sq ft is in the pipeline. The partner, especially for the printers, has planned to bring a touch-and-feel option for the customer before purchasing. According to the partner, it is the first-of-its-kind initiative amongst all the partners in the region. It has also tied up with vendors for the supply of free cartridges for the printers used for demo purposes. With inputs from: Nivedan Prakash, Avishek Rakshit, Prasanth Menon, B Swaminathan, Sandhya Malhotra D elhi-based Compro Computers has been associated with Canon products since 1994, when the company did not even enter into the India market. The partner enjoys old and healthy partnership with Canon range of printers, including wide format printer, scanners and cameras. Over the year, the partner has decided to come out from distribution business. Currently, it focuses on 100% retail through Canon Image Square, an exclusive Canon outlet. Althoug Compro Computers has Canon Experience Zone at Nehru place, the Canon Image Square, will be a hub for all imaging products, showcasing products ranging from printers, scanners, AIOs, digital cameras and accessories, etc. "With the opening of this showroom, we are firstly aiming to showcase complete printing solutions. This would help customers see a variety of printing products designed for various purposes and they can pick a product before getting it installed by the system integrator," said Pankaj Bandlish. The company did Rs 50 lakh of printer business last year, wherein the overall revenue of the company was Rs 15 crore in FY 11-12. I leading channel partner operating from Kolapur region, Aditya Peripherals deals in multiple vendors with regards to printer business. The company sells printers of HP, Epson, Brother and Samsung. Also, it sells fast moving Canon printers due to demand arising from other channel partners of the region. Arun Managave of Aditya Peripherals said, "Overall, the printer business has been really slow in this region as compared to last fiscal. In the last year, the first half witnessed a good business, however, the second half was not so great. This year the first half has been really slow and it seems the trend is going to continue in the region." Furthermore, in this market there is a drop in demand for inkjet printers while laserjet have been the saving grace for the partner. Managave said, "In last FYQ1 we did business in inkjet worth Rs. 25 lakh while this year we earned only about Rs. 20 lakh. On the other hand, in laser category, we have witnessed 10% growth, as compared to last FYQ1 where we did about Rs. 60 lakh worth business. This year we did about Rs. 70 lakh worth business." In cartridge segment, Managave states that there is a drop in injket sales while with regards to laser toners the last FYQ4 was not promising but this FY Q1 has picked up and is showing a positive uptrend. For the partner, printer and related business contribute about 18-20% to its overall revenue. AFFORDABLE & RELIABLE 403-A, Sant Nagar, East of Kailash, New Delhi-110065 Ph. : 26235576, 26433377, 26435511 Mobile-9811068707 e-mail: email@example.com Branch Office: Chennai: 1st Floor Flat No. Old 10/5, New 25/5, Nathamuni Street, T. 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