© 2009 infotrends, inc. u.s., w. european and world wide market and trends for laser and inkjet...

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© 2009 InfoTrends, Inc. www.infotrends.com U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication Supplies Consulting Service September 2010

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Page 1: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

© 2009 InfoTrends, Inc. www.infotrends.com

U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies

John ShaneDirector, Communication Supplies Consulting ServiceSeptember 2010

Page 2: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

2 © 2009 InfoTrends, Inc. www.infotrends.com

Boston

UK

TokyoBeijing

Industry analyst firm focused on the consumer imaging, office document technology and

production printing & publishing industries.

Focused Credible Responsive Visionary

Page 3: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

3 © 2009 InfoTrends, Inc. www.infotrends.com

Relationship-Based Consulting Services

• On Demand Printing

• Wide Format Printing

• Jetting Technologies

• Digital PeripheralsSolutions

• Image Scanning

• China Printers

• Digital Photography

• Image Scanning

• Photo Printing

• Dynamic ContentSoftware

• On Demand Printing

• Production WorkflowSolutions

• Dynamic ContentSoftware

• Network DocumentSolutions

• Internet Imaging

• Image Scanning

• CommunicationSupplies

• Production Workflow Solutions

• Document Outsourcing

• Business Development Strategies

• CommunicationSupplies

• Network DocumentSolutions

• Managed Print Services

• CommunicationSupplies

• Photo Printing

• Internet Imaging

• Digital Photography

Hardware Services Software Supplies

Consumer

Office

Production

Page 4: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

4 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. Print Volume (B)

• “Print” volume withstood previous recessions

Explosion of devices, analog to digital

Hint of some impact from recessions

• Print volume declines in ‘08 and ‘09

Market is mature

Recession is be deeper

• Office market is most vulnerable

Fewer people and less activity

Focus on costs, electronic workflow

• Production is more resistant

Analog to digital

Higher value pages (color)

• Home may be the most resistant –but for photos?

Page 5: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

5 © 2009 InfoTrends, Inc. www.infotrends.com

Recession’s current impact on the supplies market

• Overall print volumes are down in ‘09, 9% from the peak in 2007

Reduced headcount and activity

Emerging MPS impact

• Great incentive to save money on office supplies

3rd Party Product gains share but not enough to offset overall decline

- 35% share for B/W printer, 23% share for B/W MFPS, 6% share for Color devices

Duplex rates

Restricted color use

• Growing interest in Managed Print Services

Print volume reductions come with MPS

Page 6: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

6 © 2009 InfoTrends, Inc. www.infotrends.com

Recession’s longer term impact on the supplies market• Slower growth than previously forecasted

Slow return of white collar employment

Residual reluctance to increase costs

Slower decline for B/W printing

Slower shift to color, on-going controls

Some aftermarket share gains to stay?

• MPS gains share and impacts supplies

Print volume reductions within an organization

- Shift to less-paper processes

Increased use of 3rd party

Duplex printing

Shift to higher volume machines with lower CPP?

InfoTrends believe that the recession will have a long term impact on print

Page 7: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

© 2009 InfoTrends, Inc. www.infotrends.com

Supplies Market Forecast 2008-2013

Page 8: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

8 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. & Western Europe Installed Base Forecast Units (000)

US Western Europe

0

50000

100000

150000

200000

TT Fax/MFP

Inkjet Fax/MFP

Laser Fax/MFP

Inkjet Printer/MFP

Monochrome Laser/MFP

Color Laser/MFP

B&W Copier/MFP

Color Copier/MFP

Page 9: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

9 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. & Western Europe Total Print Volume Forecast (B)

US Western Europe

0

200

400

600

800

1000

1200

1400

1600

1800

TT Fax/MFP

Inkjet Fax/MFP

Laser Fax/MFP

Inkjet Printer/MFP

B&W Laser/MFP

Color Laser/MFP

B&W Copier/MFP

Color Copier/MFP

Page 10: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

10 © 2009 InfoTrends, Inc. www.infotrends.com

World Total Print Volume (B)Electrophotography and Desktop Inkjet

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2008 2009 2010 2011 2012 2013

ROW

WE

US

Page 11: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

11 © 2009 InfoTrends, Inc. www.infotrends.com

World Total Print Volume (B)Electrophotography and Desktop Inkjet

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2008 2009 2010 2011 2012 2013

Production Color

Production B/W

Inkjet Total

Color Multifunction Page

Color Single-Function PageB&W Multifunction Laser

B&W Single-Function Laser

Page 12: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

12 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. & Western Europe Electrophographic Marking Supplies $M at Final POSElectrophotographic Copier and Printer and MFP

Total Value=Toner, Developer, photoreceptor and Residual Cartridge

US Western Europe

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Spot Color

Color Printer/MFP

B/W Printer/MFP

Color Copier/MFP

B/W Copier/MFP

Page 13: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

13 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. & Western Europe Electrophotographic Marking Supplies $M at Final POS Electrophotographic Copier and Printer and MFP

US Western Europe

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Production Device

Office Device

Page 14: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

14 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. Serial Inkjet Cartridge Units (M)Serial Inkjet Printers/MFPs

0

100

200

300

400

500

600

2008

2009

2010

2011

2012

2013

2008

2009

2010

2011

2012

2013

Inkjet fax

Snapshot

Photo Enabled

Photo Centric

General Purpose

US Western Europe

Page 15: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

15 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. Serial Inkjet Cartridge $M at Final POSSerial Inkjet Printers/MFPs

0

2000

4000

6000

8000

10000

12000

14000

2008

2009

2010

2011

2012

2013

2008

2009

2010

2011

2012

2013

Inkjet fax

Snapshot

Photo Enabled

Photo Centric

General Purpose

US Western Europe

Page 16: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

16 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. Facsimile Marking Supplies $M at Final POS

0

50

100

150

200

250

300

350

400

450

500

Thermal TT SF

Thermal TT MF

Laser SF

Laser MF

Inkjet SF

Inkjet MF

US Western Europe

Page 17: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

17 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. Total Marking Supplies $M at Final POS

0

5000

10000

15000

20000

25000

30000

35000

40000

Fax/Fax MFP

Desktop Inkjet

Spot Color

Color Printer/MFP

B/W Printer/MFP

Color Copier/MFP

B/W Copier/MFP

US Western Europe

Page 18: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

18 © 2009 InfoTrends, Inc. www.infotrends.com

World Total Marking Supplies Value at Final POS $MElectrophotography and Desktop Inkjet

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2008 2009 2010 2011 2012 2013

Production Color

Production B/W

Inkjet Total

Color Multifunction Page

Color Single-Function PageB&W Multifunction Laser

B&W Single-Function Laser

Page 19: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

19 © 2009 InfoTrends, Inc. www.infotrends.com

World Total Marking Supplies $M at Final POSElectrophotography and Desktop Inkjet

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2008 2009 2010 2011 2012 2013

ROW

WE

US

Page 20: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

20 © 2009 InfoTrends, Inc. www.infotrends.com

WW Marking Supplies Value at Final Point of Sale $M

2008 2009 2010 2011 2012 2013$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

ROW

Argentina

Mexico

Poland

Russia

Brazil

China

India

WE

US

Page 21: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

© 2009 InfoTrends, Inc. www.infotrends.com

OEM vs. Aftermarket

Page 22: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

22 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. Aftermarket Share of Total Marking Supplies $MElectrophotography

US WE

0%

5%

10%

15%

20%

25%

2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013

BW Copier

Color Copier

BW Printer

Color Printer

Page 23: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

23 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. Total Aftermarket Supplies Revenue at Final POS $MElectrophotography

US WE

$-

$500

$1,000

$1,500

$2,000

$2,500

2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013

Color Printer

BW Printer

Color Copier

BW Copier

Page 24: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

24 © 2009 InfoTrends, Inc. www.infotrends.com

U.S B/W Laser Cartridge Channels 2009 Share of Units

OEM

Internet

B2B

Retail

OEM Direct

Aftermarket

Page 25: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

25 © 2009 InfoTrends, Inc. www.infotrends.com

U.S Color Laser Cartridge Channels 2009 Share of Units

OEM

Internet

B2B

Retail

OEM Direct

Aftermarket

Page 26: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

26 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. Color Aftermarket Issues

• Aftermarket penetration about 7%

Higher for separates and for non-Chemically produced toner

Lower for AIOs

Developer

• AIOs very difficult . Barriers are:

Toner

Matching toner to drum

Process problems/reliability

Reseller concerns?

• Users are ready to try aftermarket color

• Resellers may not be ready to offer them

Page 27: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

27 © 2009 InfoTrends, Inc. www.infotrends.com

Leading laser cartridge manufactures supplying to the US market

Remanufactured Cartridges New Build

Clover (US, Mexico, Canada, Vietnam) Ninestar / G&G (China)

(Clover) West Point Products (US) Print-rite (China)

Nukote (Mexico) Uninet (China)

MSE (US) Media Sciences (production in China)

PTI (US) GPI (Taiwan)

Print-Rite (China) GCC (Hong Kong)

Turbon (US/Europe/Asia) Hana (Korea)

AFEX (China) MMC (China)

Mipo (Hong Kong) Others

Page 28: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

28 © 2009 InfoTrends, Inc. www.infotrends.com

35.3%

61.7% 58.3%

18.3%

23.1%21.9%

20.6%

10.6% 13.9%

32.3%

36.3%

12.3%

13.5%6.9%

14.4%

0%

20%

40%

60%

80%

100%

Brazil Russia India China

Pe

rce

nta

ge

of

Re

sp

on

de

nts

Don’t know

Only remanufactured or refilledtoner or compatible supplies

We don’t use toner cartridges

Mostly remanufactured orrefilled cartridges or compatiblebut some OEM cartridges

Mostly OEM but someremanufactured or refilledcartridges or compatiblesupplies

Only new OEM branded inkcartridges

Q47: Toner Cartridges Typically Purchased for Laser PRINT Devices

Which type of toner cartridges does your company typically buy for your laser printers or multi-function devices?

N = 306 303 302 303

Page 29: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

29 © 2009 InfoTrends, Inc. www.infotrends.com

66.1%58.2%

47.0%

15.8%36.4%

27.0%

18.1%

5.5%

38.7%

22.7%

26.1%

38.7%

0%

20%

40%

60%

80%

100%

Brazil Russia India China

Pe

rce

nta

ge

of

Re

sp

on

de

nts

We usually buyready to usecartridges

Both about thesame

We usually take theempty cartridge tothe store for themto refill thecartridge for us

Q53: Whether Toner Cartridges are Refilled

For the non-OEM, refilled, remanufactured, compatible toner cartridges that you use.

N = 177 110 115 163

Page 30: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

30 © 2009 InfoTrends, Inc. www.infotrends.com

U.S Inkjet Cartridge Unit Demand (M)

0

100

200

300

400

500

600

2008 2009 2010 2011 2012 2013

Tanks

Integrated

Page 31: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

31 © 2009 InfoTrends, Inc. www.infotrends.com

Western Europe Inkjet Cartridge Unit Demand (M)

0

50

100

150

200

250

300

350

400

2008 2009 2010 2011 2012 2013

Tanks

Integrated

Page 32: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

32 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. Aftermarket Share of Inkjet Cartridge Units

0%

5%

10%

15%

20%

25%

30%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Canon

HP

Epson

Lexmark

Dell

Brother

Page 33: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

33 © 2009 InfoTrends, Inc. www.infotrends.com

Western Europe Aftermarket Share of Inkjet Cartridge Units

0%

5%

10%

15%

20%

25%

30%

2005 2006 2007 2008 2009

Canon

HP

Epson

Lexmark

Brother

Page 34: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

34 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. Aftermarket Share of Inkjet Cartridge Units

0%

5%

10%

15%

20%

25%

Integrated

Tanks

Overall

Page 35: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

35 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. Inkjet Aftermarket Product Types

Integrated Cartridges

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011 2012 2013

Remanufacture

While-you-wait Refill

Syringe/User refill kits

Page 36: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

36 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. Inkjet Aftermarket Product Types

Ink tanks

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011 2012 2013

New Build

Reman

While-you-wait Refill

Syringe/User refill kits

Page 37: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

37 © 2009 InfoTrends, Inc. www.infotrends.com

Western Europe Aftermarket Share of inkjet Cartridge Units

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008 2009 2010 2011 2012 2013

Integrated

Tanks

Overall

Page 38: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

38 © 2009 InfoTrends, Inc. www.infotrends.com

U.S Inkjet Cartridge Channels 2009 Share of Units

OEM

Internet

B2B

Retail

OEM Direct

Aftermarket

Page 39: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

39 © 2009 InfoTrends, Inc. www.infotrends.com

35.3%44.6%

53.0%

13.1%

32.0%24.5%

16.7%

13.5%11.9%

21.8%

32.7%

12.9%

28.1%17.3%

7.9%13.4%

0%

20%

40%

60%

80%

100%

Brazil Russia India China

Pe

rce

nta

ge

of

Re

sp

on

de

nts

Don’t know

Only remanufactured or refilledtoner or compatible supplies

Mostly remanufactured orrefilled cartridges or compatiblebut some OEM cartridges

Mostly OEM but someremanufactured or refilledcartridges or compatiblesupplies

We don’t use inkjet cartridges

Only new OEM branded inkcartridges

Q48: Inkjet Cartridges Typically Purchased for Inkjet PRINT Devices

Which type of inkjet cartridges does your company typically buy for your inkjet printers or multi-function devices?

N = 306 303 302 303

Page 40: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

40 © 2009 InfoTrends, Inc. www.infotrends.com

66.1%58.2%

47.0%

15.8%36.4%

27.0%

18.1%

5.5%

38.7%

22.7%

26.1%

38.7%

0%

20%

40%

60%

80%

100%

Brazil Russia India China

Per

cen

tag

e o

f R

esp

on

den

ts

We usually buyready to usecartridges

Both about thesame

We usually take theempty cartridge tothe store for themto refill thecartridge for us

Q54: Whether Inkjet Cartridges are Refilled

For the non-OEM, refilled, remanufactured, compatible inkjet cartridges that you use.

N = 158 71 68 138

Page 41: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

© 2009 InfoTrends, Inc. www.infotrends.com

MPS Impact on Supplies and our evolving need to print

Page 42: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

42 © 2009 InfoTrends, Inc. www.infotrends.com

Reasons for Office PrintingPr

intin

g G

row

th

Time

Emerging RapidGrowth

Peaking Declining Fading

Read and Discard

Temporary Reference

TransactionsCollaboration/Editing

Archival/Storage?

Page 43: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

43 © 2009 InfoTrends, Inc. www.infotrends.com

Document Printing Migration and Losses

ConventionalPrint

Magazines

NewspapersForms

Short run colorVariable data

On demand

ProductionDigital

StatementsInvoicesOffice

Print

Photo Books

MarketingPromotionalMobility

Social Media

E-mailReports/Memos

Page 44: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

44 © 2009 InfoTrends, Inc. www.infotrends.com

Office Document Printing LifecyclePr

intin

g G

row

th

Time

Emerging RapidGrowth

Peaking Declining Fading

Web Pages

Maps

Contracts/Legal Docs

Proposals

E-mail/MemosColor Brochures

MarketingCollateral

Mobile?

Social Media?

Financial Reports

Forms/Invoices

Engineering Docs

Spreadsheets

Presentations

Reports

Newsletters

Page 45: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

45 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. MPS Market Forecast $M

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2008 2009 2010 2011 2012 2013

Supplies

Solutions

Services

Hardware

Page 46: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

46 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. MPS Share of Supplies Market $M at Final point of Sale – Supplies in Office Environment (Excludes Home and Production)

0%

5%

10%

15%

20%

25%

30%

35%

2008 2009 2010 2011 2012 2013

Page 47: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

47 © 2009 InfoTrends, Inc. www.infotrends.com

24.9%

28.4%

0%

10%

20%

30%

W. Europe US

N = 184 128Respondents who are currently engaged in MPS

Percentage of Money Initially Saved by Assessment

U.K. France, Germany

Page 48: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

48 © 2009 InfoTrends, Inc. www.infotrends.com

MPS disrupting the supplies market

• Less print in the workflow

• More duplex printing

• Lower cost per page

Migration to more cost effective devices

Cost pressure across all classes of office devices

Increased use of 3rd party supplies

Controls on color

• Cost per coverage pricing model?

• Disruptions in the distribution channel

Page 49: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

49 © 2009 InfoTrends, Inc. www.infotrends.com

Distribution Issues

• MPS impact on the channels?

Who will lose who will win the business as it shifts under an MPS plan

All suppliers need to position for MPS

• What is the role of the contract stationer in MPS?

• What is the role of the internet specialist?

• Distributors?

• How does MPS change supplies buying and delivery?

Page 50: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

50 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. MPS Impact on Supplies 2010

Level of MS Service Channel Legacy of MPS Provider

End User Organization Size

Tier 1 - Supplies Only

Tier 2 - Perventative Maintenance/Standard CPC

Tier 3 -Advanced MPS

OEM Direct

OE Dealer

IT Reseller

PS/FM

Supplies

Small

Medium

Large

Page 51: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

51 © 2009 InfoTrends, Inc. www.infotrends.com

N = 439

Not Important Extremely Important

Q.26: Rate the importance to each of the following criteria to why you chose to engage in Managed Print Services? (1 to 5 - 1 not important to 5 extremely important)

Mean Importance of Criteria in Choosing to Engage in Managed Print Services – Total (Q.26) (1)

U.K. France, Germany

3.2

3.2

3.4

3.4

3.5

3.5

3.7

1 2 3 4 5

Wanted to have ONE Predictable monthly chargefor of our services

Wanted to have our supplies managed by ONEvendor

Wanted to have SERVICE of my copier/printersmanaged one vendor

Wanted to have our SUPPORT of mycopier/printers managed one vendor

Wanted to consolidate all of my Printer/Copierhardware under one contract

Wanted to reduce costs which included theOptimisation of our fleet of products

Wanted to improve costs

Page 52: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

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Importance of Criteria for Engaging in Managed Print Services (1)Rate the importance to each of the following criteria to why you chose to engage in Managed Print Services?

N = 343

Very ImportantNot Important

Source: Professional & Managed Print Services Multi Client Study

U.S MPS Study

3.7

3.8

3.8

3.8

3.9

3.9

4.0

1 2 3 4 5

Wanted a vendor that could provide printmanagement across multiple HW vendor

products

Wanted to have ONE Predictable monthly chargefor of our services

Wanted to consolidate all of my Printer/Copierhardware under one contract

Wanted to reduce costs which included theOptimization of our fleet of products

Wanted to have SERVICE of my copier/printersmanaged one vendor

Wanted to have our SUPPORT of mycopier/printers managed one vendor

Wanted to improve costs

Page 53: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

53 © 2009 InfoTrends, Inc. www.infotrends.com

Current Types of Supplies Companies Are Getting Through MPS Services (Q.88)

N = 208Respondents who are currently engaged in MPS

Q.88: What types of supplies are you currently getting through your MPS services?

Just original equipment

manufacturer supplies; 52.40%

A combination of all of the above;

30.80%

Just recharged supplies; 10.60%

Just 3rd party manufac-turer supplies; 6.30%

U.K. France, Germany

Page 54: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

54 © 2009 InfoTrends, Inc. www.infotrends.com

Type of Supplies Received Through MPS Services

Just 3rd party manufacturer

supplies16.6%

A combination of all of the above

38.2%

Just recharged supplies

5.1%

Just original equipment

manufacturer supplies

40.1%

What types of supplies are you currently getting through your MPS services?

N = 157 Respondents involved or familiar with Managed Print Services who are currently using Managed Print Services for their company

Source: Professional & Managed Print Services Multi Client Study

U.S MPS Study

Page 55: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

55 © 2009 InfoTrends, Inc. www.infotrends.com

General Category of Supplies Company Opt to Use More of

Branded toner or ink cartridges

(same brand as copier, printer

equipment)46.1%

Other independent brand of toner or

ink cartridges15.8%

Remanufactured toner or ink cartridges

38.2%

N = 76 Respondents that have used/is using document assessment software or has engaged in some sort of consulting services

What general category of supplies did your company opt to use more of as a result of its document assessment?

Source: Professional & Managed Print Services Multi Client Study

U.S MPS Study

Page 56: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

56 © 2009 InfoTrends, Inc. www.infotrends.com

Marking Supplies Distribution Channel Share

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011

Other ChannelsInternet SpecialistOther Consumer RetailerPaper MerchantHardware Vendor DirectForms MFR/Dist.Direct Mail CatalogsWarehouse ClubsComputer SuperstoreOffice SuperstoresPrinter DealersBTAIP SpecialistSmall BPIAContract Stationer

MPS

Which channels will make way for MPS?

Page 57: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

© 2009 InfoTrends, Inc. www.infotrends.com

Green/Environment

Page 58: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

58 © 2009 InfoTrends, Inc. www.infotrends.com

N = 319

Importance of Environmental Features When Making the Decision to Purchase Printer Products How important are the following environmental features when making the decision to purchase printer products for your business?

41.4% 33.9%

24.5%

27.3%

17.9%

21.3%

16.6%

14.4%

35.7%

36.4%

41.4%

36.7%

41.1%

25.7%

24.5%

27.9%

30.4%

32.3%

0% 20% 40% 60% 80% 100%

Other

Automatic Duplex Printing Setup

Capture & Deliver Documents Electronically

Energy Star Certification

Print Saver Mode

Recycling Programs (Ink, Toner - Cartridges)

Not important at all Somewhat unimportant Neither important or notSomewhat important Extremely important

Page 59: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

59 © 2009 InfoTrends, Inc. www.infotrends.com

USA: OEM Toner Cartridge Return Programs

Company Program Name Year Began

Canon Canon’s Toner Cartridge Return Program Recently expanded

1990

Dell Use and Return Program 2003

Epson Epson Toner Recycle Program 2005

HP Planet Partners 1991

IBM IBM Printer Supplies Return Program 2001

Lexmark Lexmark Cartridge Collection Program

1996

Ricoh Used Toner Cartridge Collection Program

1995

Samsung STAR (Samsung Take Back and Recycling Progam)

2008

Toshiba Close the Loop’s “Zero waste to Landfill” recycling program

2008

Xerox Green World Alliance 1960s

Page 60: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

60 © 2009 InfoTrends, Inc. www.infotrends.com

USA: OEM Inkjet Cartridge Return Programs

Company Program Name Year Began

Dell Inkjet Recycling Program

2003

HP Planet Partners 1998

Epson Ink Cartridge recycling program

Lexmark Lexmark Inkjet Cartridge Return Program (Close the Loop)

1996

Page 61: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

61 © 2009 InfoTrends, Inc. www.infotrends.com

Environmentally Responsible Printer Brands

44.2%

0.3%

0.9%

0.9%

0.9%

0.9%

1.6%

2.2%

2.5%

4.7%

5.3%

5.3%

6.9%

23.2%

0% 20% 40% 60%

Don’t Know

Samsung

Brother

Kodak

Konica Minolta

Fuji

Epson

Ricoh

None

Dell

Canon

Lexmark

Xerox

HP

Please indicate which of the following printer/printing brands are best described by the following statements: 'is environmentally responsible'

N = 319

Page 62: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

62 © 2009 InfoTrends, Inc. www.infotrends.com

USA and W. Europe Remanufacturer Laser Cartridge Flows

Users Throw Out80%

Remanufacturer Collects

20%

Land Fill

80%

~26% Bad*

~74% Good*Remanufactured

Recycle or Landfill

= Recollect only 15% of cartridges needed

85% fall out of the loop

20% are Collected again

Page 63: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

63 © 2009 InfoTrends, Inc. www.infotrends.com

USA and Europe Remanufacturer Inkjet Cartridge Flows

Remanufacturer Collects

14%

Users Throw Out86%

Land Fill

86%

~30% Bad*

~70% Good*Remanufactured

Recycle or Landfill

= Recollect only 10% of cartridges needed

90% fall out of the loop

14% are Collected again

Page 64: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

64 © 2009 InfoTrends, Inc. www.infotrends.com

U.S. What happens to Cartridges/components that remanufacturers collect but can’t use or sell?

Recycle9%

Waste to

Energy20%

Landfill71%

Laser

Recycle5%

Waste to

Energy35%

Landfill60%

Inkjet

Page 65: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

© 2009 InfoTrends, Inc. www.infotrends.com

Update on Legal Issues

Page 66: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

66 © 2009 InfoTrends, Inc. www.infotrends.com

Patents and Intellectual Property

• OEMs are increasing their vigilance to protect their intellectual property

• Increasing pace of lawsuits and actions through the US Government International Trade Commission to receive damages, court injunctions or exclusion orders to protect against product that infringes intellectual property

• We expect that US based vendors and resellers will develop a heightened concern about new-build supplies especially those made in China.

Page 67: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

67 © 2009 InfoTrends, Inc. www.infotrends.com

Companies Involved in Recent Suits with Lexmark, HP, Canon or Epson

Companies Lexmark HP Canon Epson

Ninestar Technology Company, Ltd. ● ● ● ●

Ninestar Image Co. Ltd. (a/k/a Ninestar Technology Co., Ltd.) ● ● ●

Ninestar Image Int’l Ltd. ● ●

Acecom Inc.-San Antonio d/b/a Inksell.com ● ●

ACM Technologies, Inc. ● ●

Copy Technologies, Inc. ● ●

Direct Billing International Incorporated d/b/a Office Supply Outfitters and d/b/a The Ribbon Connection

● ●

Print-Rite Holdings Ltd. ● ●

Nano Pacific Corporation ● ●

Nectron International, Inc. ● ●

Mipo International Ltd. ● ●

Comptree Ink d/b/a Meritline ABCInk, EZ ● ●

Printer Essentials.com, Inc. ● ●

Mextec d/b/a Mipo America Ltd. ● ●

Seine Image International Co., Ltd. ● ●

Town Sky Inc. ● ●

Zhuhai Gree Magneto-Electric Co. Ltd. ● ●

Ziprint Image Corporation ● ●

Page 68: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

68 © 2009 InfoTrends, Inc. www.infotrends.com

Companies Involved in Recent Suits with Lexmark, HP, Canon or Epson

Companies Lexmark HP Canon Epson Companies Lexmark HP Canon Epson

123 Inkjets.com ● Jahwa Electronics Co., Ltd. ●

123 Refills, Inc. ● John Does 1-20 ●

Abacus 24-7 LLC ● L2 Commerce, Inc. d/b/a PrintMicro.com ●

ABCCo.net, Inc. ● Laser Toner Technology, Inc. ●

AcuJet ● LD Products, Inc. ●

All Amedia Outlet Corp. d/b/a Inkandbeyond.com ● Linkyo Corp. d/b/a Supermediastore.com ●

Alpha Image Tech ● Master Ink Co., Ltd. ●

Apex Distributing Inc. ● Media Street Inc. d/b/a mediastreet.com ●

Artech GmbH ● MicroJet Technology Co., LTd. ●

Asia Pacific Microsystems, Inc. ● Mipo Science & Technology Co., Ltd. ●

Aurora Eshop, Inc. d/b/a butterlyinkjet.com ● Mipo Technology Limited ●

Butterfly Print Image Corp. Ltd. ● MMC Consumables Inc. ●

C&R Services, Incorporated d/b/a C&R Distributors and C&R Distributing ● Ninestar Japan Co. ●

Cartridge Hut and Paperwork Plus ● Ninestar Management Co., Ltd. ●

Cartridges R Us, Inc. ● OHM Electric Inc. ●

Chung Pal Shin ● Ourway Image Co., Ltd. ●

Clickinks.com, LLC ● Polek & Polek Inc. ●

Color Creation Inc. ● Price-Less Inkjet Cartridge Co. ●

Compu-Imaging, Inc. ● PTC Holdings Limited ●

Copylite Products Corp. ● Quality Cartridges, Inc. ●

Dataproducts USA LLC ● R & L Imaging Group, Inc. formerly known as IEM Consumables, Inc. ●

Eforcity Corporation d/b/a Eforcity.com ● Red Powers, Inc. ●

EIS Office Solutions, Inc. ● REV Corporation ●

E-Toner Mart, Inc. ● Ribbon Tree (USA) Inc., dba Cana-Pacific Ribbons Inc. ●

Futurewell Holding Limited ● RibbonTree (Macao) Trading Co., Ltd. ●

Gerald Chamales Corp., d/b/a Rhinotek Computer Products ● Shanghai Angel Printer Supplies Co. Ltd. ●

Global Business Support Systems, Inc. d/b/a Printcountry.com ● Shenzhen Print Media Co., Ltd. ●

Glory South Software Manufacturing Inc. ● SinoTime Technologies, Inc. d/b/a All Colors ●

Huizhou Jahwa Electronics Co., Ltd. ● SmartOne Services LLC d/b/a InkForSale.net ●

IJSS Inc., d/b/a TonerZone.com Inc. and d/b/a Inkjet Superstore ● Tatrix International ●

Ink Lab (H.K.) Co. Ltd. ● Tully Imaging Supplies Ltd. ●

Ink Tec America Corporation ● Union Technology Int’l (M.C.O.) Co. Ltd. ●

Ink Tec Co. Ltd. ● Virtual Imaging Prouducts Inc. ●

Ink Technologies Printer Supplies, LLC d/b/a Ink Technologies LLC ● Wellink Trading Co., LTd. ●

Inkjetmadness.com d/b/a inkgrabber.com ● XP Solutions Properties, LLC d/b/a Clickinks.com ●

Inkjetwarehouse.com Inc. ● XSE Group, Inc. ●

InkPlusToner.com ● Zhuhai National Resources & Jingjie Imaging ●

IowaInk, LLC d/a/b iowaink.com ● Zhuhai Seine Technology Co., Ltd. ●

Page 69: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

69 © 2009 InfoTrends, Inc. www.infotrends.com

82.0%

44.9%

90.4%

7.8%

9.2%

5.6%10.1%

45.9%

84.8%

10.6%

4.0% 4.6%

0%

20%

40%

60%

80%

100%

Brazil Russia India China

Per

cen

tag

e o

f R

esp

on

den

ts

Don’t know /not sure

No

Yes

Q55: Opinion on Counterfeit Cartridges

Do you believe that there is a lot of counterfeit toner and inkjet cartridges in the market?

N = 306 303 302 303

Page 70: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

70 © 2009 InfoTrends, Inc. www.infotrends.com

73.9%

22.4%

64.6%

26.1%

77.6%

35.4%

16.5%

83.5%

0%

20%

40%

60%

80%

100%

Brazil Russia India China

Per

cen

tag

e o

f R

esp

on

den

ts No

Yes

Q56: Counterfeit Cartridges Causing Problems

Do you believe that counterfeit toner and ink cartridges present a problem for your company?

N = 306 303 302 303

Page 71: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

71 © 2009 InfoTrends, Inc. www.infotrends.com

Summary

• US and WE are flat with potential for slight revenue growth

• MPS is a threat to the supplies market growth

• MPS likely increases aftermarket share and disrupts the channels

• Green is of growing importance but may have the PR edge

• Legal is moving into high gear

Page 72: © 2009 InfoTrends, Inc. U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies John Shane Director, Communication

72 © 2009 InfoTrends, Inc. www.infotrends.com

[email protected]