printer market

8/13/2019 Printer Market

1/17

Printers Market in India


2/17

Market Size 2011 : 2.7 Million Units

2015 : 3.4 Million Units

Growth Rate 6% CAGR

Key Customer Segments

BFSI

Manufacturing

Public Sector

IT/ITES

Private sectors of emerging markets

Drivers

Increasing Demand for all-in-one printers

Rapidly increased volume of Digital Information

Increased demand of color printers

Challenges

Highly cost sensitive customers

Increased number of online transactions

Increased preference for E-books

Trends Increasing focus on high resolution printers

Growing preference for printers with customized capabilities

Key Customer Needs

Cost

Resolution

Longevity

Reliability

Post-sales supportKey Vendors HP, Canon, Samsung, Epson

A Quick Snapshot


3/17

The Printer market in India shipped 2.7 million units in 2011 and this figure is

expected to increase to 3.1 million units by 2013 and 3.4 million units by 2015,

growing at a CAGR of 6 percent during the forecast period.

The growth is mainly because of the increasing demand for advanced high-quality

devices that can reproduce pictures that are shot through high-definition

cameras on paper or another printable surface

Market Forecast


4/17

Indian (Small & Medium Business) SMB Printer Market

SMBsplays a vital role in the revenue generation for the printer market in

India

The mega presence of (Small and Medium Business) SMBs in India currently

forms a pivotal support for the country as well as the major Indian markets

IT adoption amongst SMBs is anticipated to witness a CAGR of 24%


5/17

Inkjet Printers

Inkjet is commonly used within the

consumer as well as segments which

posseses limited usage

HP and Epson currently the majorityshare within this segment

Accounts for 66% of the market share and

is growing at a CAGR of 14%

Laser Printers

Primarily seen to ne adopted by

enterprises and corporate segments

where the print volumes are high

HP and Canon hold a dominating

position in this segment

Accounts for about 32% of the market

share and is growing at a CAGR of 25%

Market Landscape

The purchase decision amongst users are primarily based on Price, Speed of printing

and Print Quality


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Printer Market in India 20112015 (US$ billion)

Source: TechNavio Analysis


7/17

Five Forces Analysis

Bargaining Power of

Suppliers(High)

With the leading vendors dependent onthird-party suppliers for hardware, thesupply and cost of the final product is

completely influenced by the suppliers

Bargaining Power ofBuyers

(Medium)

With limited vendors in thismarket, buyers have marginal

control over the price ofprinters

Threat of Substitutes

(Medium)

Demand for printers is decreasing dueto the rapid penetration of online

transactions

Threat of Rivalry

(Medium)

Companies other than HP areexperiencing intense competition to

retain and gain market share

Threat of New Entrants

(Medium)

New entrants have an opportunity tocompete only in the 'Others' segment

because the market leaders havealready gained a strong hold in the

Printer market in India


8/17

Vendor LandscapePrinter Market in India by Vendor Segmentation 2011



Printer Market in India by A4 MFP Segment Share 2011


9/17

Parameter

Resolution The sharpness of a printer inreplicating softcopy fed into it

BFSILow High

1 2 3 4 5

ManufacturingLow High

1 2 3 4 5

IT/ITESLow High

1 2 3 4 5

Public SectorLow High

1 2 3 4 5

Private Sector of

Emerging Markets

Low High1 2 3 4 5

EducationLow High

1 2 3 4 5

Cost The price of a printer

BFSILow High

1 2 3 4 5


1 2 3 4 5

IT/ITES

Low High

1 2 3 4 5

Buying Criteria

Parameter Details End-Users Significance Attached


10/17

PublicSectorLow High

1 2 3 4 5

Private Sector of

Emerging Markets

Low High1 2 3 4 5

EducationLow High

1 2 3 4 5

ReliabilityThe consistency of a printer withrespect to resolution andoperational performance

BFSILow High

1 2 3 4 5


1 2 3 4 5

IT/ITESLow High

1 2 3 4 5


1 2 3 4 5

Private Sector of

Emerging Markets

Low High1 2 3 4 5

EducationLow High

1 2 3 4 5

Longevity The durability of a printer BFSILow High

1 2 3 4 5


11/17


1 2 3 4 5

IT/ITESLow High

1 2 3 4 5


1 2 3 4 5

Private Sector of

Emerging Markets

Low High1 2 3 4 5

EducationLow High

1 2 3 4 5

Post-sales

SupportMaintenance provided by vendorsafter purchase

BFSILow High

1 2 3 4 5


1 2 3 4 5

IT/ITESLow High

1 2 3 4 5


1 2 3 4 5

Private Sector of

Emerging Markets

Low High

1 2 3 4 5


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EducationLow High

1 2 3 4 5

Key

The impact of the buying criteria is graded based on the intensity and the duration of the impact

on the current market landscape. The magnitude of the impact has been categorized as described

below:

Low

Medium

Moderately High

Negligible or no impact on the market landscape

Medium-level impact on the market

Significant impact on the growth of the market

Very high impact with a radical influence on the growth of the

market

Very High


13/17

Indian customers are known for their cost-sensitivity across products from consumer

goods to automobiles.

The high cost sensitivity of Indian customers affects the penetration of printers in this

market. Thus, vendors are forced to compromise between profit margin and

printer unit shipments in order to sell more units to customers.

The availability of more retail outlets providing printing services, affects the unit

shipments in this country. Unless the printer vendors devise a strategy to trigger or drive

Indian households to purchase printers and make them an essential device in every

household, they will suffer limited benefits from the huge untapped potential in this

market.

The vendors enjoying the majority of Indian Market Share are HP, Canon, Samsung and

Epson.

Vendor Landscape of Indian MarketHighly Cost-Sensitive Customers


14/17

SWOT Analysis - HP

StrengthsH

ewlett-Packard is the market leader in the Printermarket in India.

Over the years, it has been able to lower its overallprinter cost to cater to wider end-user segmentrequirements.

Its global presence is enabling the company todirectly handle sales and support services across theglobe.

The expertise of the company in handling end-to-endrequirements is highly appreciated by customers.

WeaknessesDespite the capability and services offered bythe company, its less competitive price tagsare an increasing concern among customers.

Opportunities

The company is well positioned to developthe latest next-generation equipment withbetter R&D to design efficient printers.

It has the financial strength to acquire nicheplayers to increase its market share.

Threats

The company lacks strong tie-ups withregional players and hence faces a threat oflosing share in the Printer market in India.


15/17

StrengthsCanon holds second position in thePrinter market in India.The company is deploying tailored strategies by productand by region.

Despite the rapid appreciation of the Japanese yen, itposted profits in all four quarters of FY2011.It is gradually increasing its market share in the Printermarket in India.

The company generates about 55 percent of its revenuefrom the Printer segment.

Weaknesses

The appreciation of the Japanese yen will affect itsprofitability.The company's presence in the Americas and theAPAC region is not significant because of theintense competition.

Opportunities

With its strong hold on the Asian market, itcould capitalize effectively on the fast-growing Printer market in India, to preventloss of market share.

Threats

Any aggressive move by HP to expand itsportfolio or introduce competitive pricingmeasures will directly impact the company morethan any other vendor in the Printer market.

SWOT Analysis - Canon


16/17

SWOT Analysis - Samsung

StrengthsSamsung has a strong hold on the A4-sized Laser Printermarket in India.It is quickly closing in on the market leaders in theMonochrome Laser segment in India.Its products are gaining traction due to its competitivepricing strategies.It has a strong hold in emerging markets.

WeaknessesThe company lacks a strong base in developedcountries.

Opportunities

The company can capitalize on the increasingdemand for application-specific printers and thepotential customer base in the Consumer segment to

gain market share from its competitors.

ThreatsWith an equal market share to that of Brother in thePrinter market in India, the company is at risk oflosing share if Brother strengthens its presence in theAPAC region.


17/17

SWOT Analysis - Epson

StrengthsSeiko Epson Corp. holds about 8 percent of themarket share in the Printer market in India.About 70 percent of its revenue is generated by itsprinter business.

It has strong presence in the Inkjet Printer segmentand the Commercial Purpose Large Format Printersegment.

WeaknessesThe company lacks revenue diversification becauseabout 60 percent of its revenue is derived from theAPAC region.Non-competitive pricing is one of the key weaknessesin the company's strategy.

Opportunities

With the company's focus on quality over price, itcould increase its focus on developed markets wherethere is a greater demand for high-resolution printersthan in emerging markets.

Threats

Its negligible presence in the Laser Printer segmentcould lead to a lower market share in the Printer marketin India.Samsung, with its laser printers, is closing in on thecompany in terms of market share.

printer market

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