Adoption of digital technology in the décor industry

Tim Phillips

222

Background• Xennia is a leading industrial digital solutions company• World class 20 year heritage and strong IP portfolio• Key expertise in inkjet inks and software

• Headquarters and manufacturing facility in UK• Sales offices in China and Brazil• Part of Royal Ten Cate group

• Innovative digital products & solutions• Complete digital solutions for industrial manufacturing• Advanced digital inks and software

33

Embracing digital technology

444

Digital inkjet printing for décor

• Digital printing adopted rapidly in ceramic tiles• Key driver – cost saving from reduced breakages

• Digital printing being adopted rapidly for textiles• Key driver – rapid introduction of new designs

• Other benefits of digital• New design capabilities• Mass customisation• Cost-effective short runs/reduced inventory

• Which benefits are compelling for other décor markets?

555

Paradigm shift in modern manufacturingCURRENT MODEL

Remote mass production

Long distance transport

Regional distribution Mass retail

PUSH

Local manufacture on demand Online retail

PULLNEW MODEL

666

Flexible manufacturing• Move to consumer driven flexible manufacture

• Implies manufacturing closer to consumption

• Example from apparel textiles• Inditex manufactures >50% “nearby Spain”1

• Reversal of move to low cost territories

• Expect to see this trend impact other industries

1 Inditex, reported in Business Week

777

Digital application adoption

GraphicsCeramics (tiles)Textiles (apparel)

LaminatesFurnishingWallcoverings

Textiles (interiors)

Labels

888

Crossing the chasm• What determines the rate of adoption of digital technology?

Market pull – do benefits have

compelling value?

Economics – cost

acceptable? investment available?

Technology – how well are market needs

met?

Communication – does market

understand value of benefits?

Adoption rate

999

Adoption in other interior decoration industries• Digital adoption in home textiles, furnishings etc at early

stage

• Market pull – benefits not as compelling?

• Economics – willingness for investment?

• Technology – ready for production?

• Communication ?

10

Technology barriers

1111

Digital solution requirements• Industrial digital solutions must meet the following:

• Required productivity• Speed• Reliability/uptime

• Required image quality

• Required print durability/fastness

• Ease of use

1212

Printhead technology• Major printheads for décor applications:

• Kyocera KJ4B (production textiles, laminates)• Epson (sampling)

• Emerging printheads from Spectra Dimatix, Ricoh, Seiko• Other manufacturers such as Xaar (if UV applicable)

• Fulfilling market demand for• High quality• High productivity• Production reliability• Wide ink compatibility

1313

Ink technology• Demanding applications for digital ink suppliers

• Highly application dependent requirements

• Key requirements• Colour performance• Fastness performance• Feel or ‘handle’ (in some cases)• Print reliability• Compatibility with production processes

• Examples• Dye based inks for home textiles• High lightfastness inks for textiles and décor paper• Inks for wall coverings, glass etc

• Xennia is developing a range of inks addressing these applications

1414

Software developments• A digitally defined image gives limitless possibilities – software is key• Also key to providing ease of use

• Variable image generation• Allows a truly unique product

• Integration with rest of production line• Potential to allow complete digitally defined products (rather than just prints)• Workflow

• Direct to print from the internet• Cutting supply chains• Reduced labour costs• Local production

1515

Encoder/product detect

Wetting, drying, curing

Fluid control

Drive electronics, software

Substrate Printheads

Ink chemistry

Motion system

Digital décor printing requires a complete solution

1616

Design and benefits

171717

Design – a key driver• Consumers (and their suppliers) don’t buy technology

• They buy designs!• The end result is key – technology is a means

• Key market pull is demand for• Image variation/randomisation• Natural effects• Colour gradients• High quality/details• Other new possibilities

• Developments in technology enable new designs• Strong influence from consumer trends

181818

Adoption of digital manufacturing• Requires a shift in design thinking

• Part of the “chasm” described previously

• Manufacturers have years of experience• With existing technology

• Design to the strengths of that technology• And around its weaknesses

• Attempting to reproduce existing designs holds back adoption• Need to help educate users• Influence via brands

191919

Design transformation• Supply chain improvements have a secondary impact on

consumers

• Design impact is primary• Now a key factor in market pull for digital textiles

• Digital technology enables striking designs• Fine detail• Colour gradients and shading

• Early win for digital textiles in high end silk scarves• Striking designs and low runs offset high initial costs

• Expect similar pull in other decoration markets

202020

Sustainability• Growing importance for environmentally sustainable

manufacturing

• Often not primary driver for adoption

• But impact is highly significant

• Example• Textile mills extensive users of water and power

• Washing, steaming and drying• Use of digital technology enables major reduction

• Up to 95% less water usage• Up to 75% less power usage

2121

Application overview

222222

Decorative laminate market• Worldwide printed décor & laminate market

• 2.6 bn m2 ($14.7 bn) in 2013

• Forecast to rise 4.4% p.a. to 3.3 bn m2 in 2018

• Value growing faster than volume• 4.6% to $18.5 bn in 2018

• Digital small proportion at present• 3.9% of value• But growing at 25-50% p.a.

Source: Smithers Pira

232323

Furnishing laminate decoration• Requirement for high throughput production printing

• Flexible laminates – papers and films• Also direct printing onto wood, MDF etc

• Laminates• Solvent or aqueous inks (aqueous preferred)• Compatibility with existing lamination processes

• Direct printing• UV or solvent inks

• Edge bands• UV inks

• Requirement for colour matching• Problem of metamerism

242424

Decorative furnishing market drivers• Currently dominated by flexo and screen

• Drivers towards digital inkjet• Move beyond commodity designs• Experimental fashions• Customised surfaces – logos & murals• Customisation and short runs

• Market requirements• Flatbed digital printing of rigid furnishings up to 1.5 x 1.0 m

• UV ink• Continuous printing of flexible laminate films/decor paper

(>2m wide)• Solvent/aqueous ink

Source: Smithers Pira

252525

Wall covering market• Overall wall coverings market forecast to reach $29bn by

2017• Boosted by recovering construction industry• 41% wallpapers etc versus paint

• Wallpaper expected to grow preferentially over paint• Very small proportion in China currently• <1% vs. 60%+ in Europe

• Digital adoption very low• Limited to one-off customised designs

Source: Durability and Design, 2012

262626

Printed wall coverings• Requirement for high throughput printing

• High quality• Economic• Flexible

• Paper/vinyl/non-woven substrates• Solvent/aqueous inks

• Flexibility to print various designs/patterns• Customised wall murals• Wide range of designs for niche markets

272727

Wall covering market drivers• Currently dominated by flexo and gravure

• Drivers towards inkjet• Faster introduction of new designs• Experimental fashions• Customised printing – murals etc• Shorter run lengths

• Market requirements• Continuous printing of paper & vinyl wall coverings

• Solvent/aqueous ink

Source: Freedonia

282828

Glass decoration market• Printed glass market $667m in 2013

• Expected to grow 10.5% p.a. to 2018

• Main glass applications• Construction/architectural (65%)• Automotive (25%)• Speciality (furniture, mirror) (10%)

• Digitally printed 11.5% (rest mostly screen)• Expected to grow >75% p.a.

Source: Smithers Pira

292929

Glass decoration• Fixed array production system for high volume

• Flatbed scanning system for small batches

• Print onto:• Glass during manufacture• PVB film prior to lamination• Glass after manufacture

• All need specific inks• Ceramic ink• PVB compatible ink• UV inks

30

Combining design & function

3131

Architectural glass• Digital decoration and functionality = powerful combination

Decoration

Etch effect

Self cleaning

IR blocking

3232

Ceramic tiles

Natural effects

Self cleaning

Printed relief

Solar

3333

Sun awnings• Digital decoration combined with digital finishing

Decoration

Self-cleaning coating

Solar?

“Factory of the future”

3434

Summary

353535

Summary• Printed interior decoration key digital market in next 3-5 years

• Ceramics market maturing

• Expect significant growth in• Home textiles• Décor laminates• Flooring• Wall coverings• Glass

• Xennia is developing inks, software and solutions for these markets

• Actively seeking partners to help progress these developments

36