Vendors Making MFPs Smarter with New Enhancements

Vendors Making MFPs Smarter with New Enhancements

573
0
SHARE

Multi-Function capability is expanding aggressively, primarily through integration with various solutions that are being developed world over to achieve higher efficiency in handling workflows. The increased acceptance of MFPs at homes, SMEs and enterprises has contributed to the growth. The introduction of the MFP positions the printer as a means of converting paper documents into digital formats for document retrieval systems.

Demand for Multifunction Printers (MFPs) is increasing as they deliver enhanced functionality and productivity for an organization. The other factors leading to MFP adoption are higher level of efficiency, lower total cost of ownership (TCO), high quality prints, ease of use and value they offer. Multifunction color laser printers possess true multitasking ability while also giving one the competitive advantage of color, when your work demands it. With a multifunction color laser printer, one can create, communicate and collaborate. Also, multifunctional devices are edging over single function devices with increased adoption by small, medium size businesses as well as large enterprises.

The MFP market does see a significant change and it poses a significant challenge for MFP leaders. With the changes in the global economic scenarios significantly impacting profit, along with stiff market competition, end customer’s diverse need of workflow integrations and security needs, advancement in the technologies and user preferences toward smart devices and green technologies, the shift toward the new market space in the east where the MFP leaders are going compete in future, MFP leaders have too much to tackle in order to retain their market positions. The MFP market drivers managed print services, advancement in customer service and adoption to emerging markets will act as the key pillars of revenue business models for the MFP market.

Emerging markets are still the market of the future, and still unexplored. The market needs and the business models the MFP makers deployed in the developed nations may undergo a complete change, and the industry may observe a new business which will suit the emerging markets. Focus toward emerging markets is not specific to the MFP market – there are many industries which try to focus on emerging markets. The MFP market can gain insight from other industries for a successful leap.

According to market-research firm International Data Corporation (IDC), the hard-copy peripherals (HCP) market in India dropped 2.2 percent sequentially in first-quarter 2016 and reached 795,451 units in terms of shipments. IDC says the HCP market in India was primarily driven by laser printers, which marked a remarkable sequential growth of 15.9 percent in first-quarter 2016. Hard-copy peripherals include printers and copier/MFPs, and this research refers to the consumer- and office-printing segments.

According to Maninder Singh, market analyst for IDC India, “In the absence of substantial demand from government and consumers in first-quarter 2016, the overall HCP market witnessed weak buying as the sentiments were not positive. However, the enterprise segment witnessed some growth and is expected to pick up (the) pace in the coming quarters.”

But the rate of decline in the worldwide hardcopy peripherals market slowed in the second quarter of 2016 (2Q16) with shipments contracting 3.8 percent year-over-year to 23.1 million units, according to the International Data Corporation (IDC) Worldwide Quarterly Hardcopy Peripherals Tracker. According to the market-research firm, the improvement in the global market was largely driven by strong demand in the color laser (21 ppm and faster) and mono laser (21-30 ppm) segments, with 18.0 percent and 8.9 percent year-over-year growth, respectively. Note that IDC tracks A2-A4 devices in its Quarterly Hardcopy Peripherals Tracker. Hardcopy peripherals include single-function printers, multifunctional systems (MFPs), and single-function digital copiers (SF D).

“ The strong emergence of InkTank printers,  driven by Epson Mr. Balaji Rajagopalan, Executive Directorover the last 5 years. Epson and consequently the Inkjet printer market have been growing steadily due to the acceptance of Ink Tank printers. 8paise per print is the lowest cost per print is the biggest driver for customers to buy the product. It gives the customers complete freedom to print. Also, the Epson Ink bottle gives 4000 page yield for black and 6500 page yield for color which eliminates the frequent purchase of ink Cartridges while using an Ink cartridge printer.  The price of Black ink bottle is Rs.320 and Color ink bottle Rs.441 each which is affordable to customers. Most of the commercial and office customers calculate TCO and find Ink Tank Printers very economical compared to Ink cartridge and Laser printers. Home users are understanding the long term benefit and shifting too now. The Low Cost per print, High Yield Ink bottle, Low cost per bottle, low TCO, great print quality and reliability are key aspects in influencing the users because these advantages are available only in Ink Tank Printers,” claimed, Siva Kumar K – Deputy General Manager IJP, Sales & Marketing, Epson India.

Market size and the Growth Rate in 2020

According to Balaji Rajagopalan, Executive Director, Technology, Channels & International Business, Xerox India, a study by Printing Industries of America (Beyond the Horizon: Shaping Print Markets and printers over the next Decade, Ronnie Davis, 2009) showed that in 2008, digital printing was about a $20 billion industry, accounting for a small overall portion of the revenues generated by the printing industry. By 2020, the growth in digital print could add $10 billion to annual industry shipments—growing 7 percent per year. At the same time, conventional printing is expected to decline more than 25% from $127 billion to $87–$100 billion. The overall printing business in India is certainly shaping up positively. The pattern of printing is evolving and changing, but the need of printing still continues to exist. We are optimistic that the market will continue to grow and some of the products we plan to launch in the next couple of months will certainly make an impact in the Indian market.

“From the current market size of over 1.23 lakhs units as per IDC report, it is expected to grow at a CAGR of 1-2% for the forecasted period. Toshiba is continuously developing new technology products and solutions to expand the business and meet the needs in India;we are expecting to achieve double digit growth within the next 3 years,” said, Nalini Jolly, General Manager – Business Solutions Division, Toshiba India.

“The Inkjet printer market in which Epson operates has been growing rapidly. We can trace this growth back to the year 2011. Epson was the first printer manufacturer to take the bold move of introducing InkTank Printers in 2011. This was in response to a compelling market need for low cost and affordable printing. Introducing InkTank printers completely changed the dynamics of the printer market &the product was immediately embraced by commercial& office consumers and subsequently home users, since printing had been made easy & affordable. Epson grew rapidly to become the No. 1 Inkjet printer company in India (by Value share according to both IDC and CMR) and has sold over 1.5 Million Printers in the last 5 years. InkTank printers offer far more benefits to consumers over than Ink Cartridge based models and Laser printers & consumers are clearly experiencing the difference. For these reasons we expect the Inkjet market size to reach close to 2 Million units in 2020 and we expect the market size to be close to at 1.5 Million units this year, “ elaborated, Siva Kumar K – Deputy General Manager IJP, Sales & Marketing, Epson India.

Demand of Inkjet grow more instead of Laser

“Most of the laser printer users are using refill toners to cutK.Bhaskhar down cost per print by compromising on the print quality. After seeing the performance and benefits of Epson InkTank printers, many customers from different segments have started replacing their laser printers with Epson InkTank printers. The Cost per print in Epson M Series printer is 12 paise against that of a Laser refill toner at 27 paise. Of course if a consumer using genuine laser toners then the difference is magnified even further. Page yield is 6000 per bottle against 2000 per laser toner. Ink Tank printers also offer benefits like low power consumption, water and fade resistant prints and the highly reliable micro piezo print head, all making Epson Ink Tank printers the best choice for office printing. Hence, we see a big shift that is likely to take place which will impact the growth of Laser printers,” said, Siva Kumar K – Deputy General Manager IJP, Sales & Marketing, Epson India.

“Due to low cost of ownership especially for SOHO & SMEs customers, Inkjet market will continue to have more growth than that of Laser. Toshiba’s main technology for printing is indirect electrostatic photographic method, a process that is both economically beneficial and productive to SMEs and to bigger offices. Inkjet will still continue to have demand amongst the SOHOs,” said, Jolly of Toshiba India.

“Adoption and demand of all forms of MFPs has certainly been on a rise since the last decade and this is largely led by SMBs and their need for one device being able to perform multiple tasks. Xerox has a slew of MFPs that can cater to multiple needs of the customers and we believe both the laser and the inkjet MFPs will continue to co-exist. There are specific markets that are catered by inkjet and laser, therefore as a result both will continue to exist in the near future. We have a range of inkjet and laser MFPs – all doing well in the market. We launched inkjet printers like Brenva HD and Trivor that are equipped with high-end print capabilities such as Smart print heads, Inline density optimization, Ink estimation tool, Object-oriented color management system etc. at Drupa this year. Brenva HD is one of its kind cut sheet inkjet press which is an amalgamation of cut sheet flexibility at inkjet price points. Also, we sustained focus on our entry to high end digital presses, be it for C60/C70, Versant series, iGen5 and Color Press 1000i and have not only received a good number of orders but a great feedback from the market for both Inkjets and Laser MFPs,” concluded, Balaji of Xerox India.

Key factors Driving MFP market in India

“With the evolution and advancement of technology in the printing industry, vendors have shifted their offerings to a comprehensive solution based package than only focusing on printing, scanning and fax needs. The multi-function devices are equipped with intelligent applications to cater to the important needs of the organizations. Concepts like mobile printing, Wi-Fi, green printing & cloud have evolved in past few years. Keeping these trends in mind,” said, K Bhaskhar, Vice-President, Business Imaging Solutions (BIS) division, Canon India.

“ Shift in purchase model from CAPex to OPex; Customer expectation of low cost of ownership with 100% product utility and growing SMEs will be the main growth target market,” pointed out Jolly of Toshiba India.

“Businesses of today pay a lot of attention to devices which are cost effective, secure and are able to multitask. As a result of this, there is an inherent growth in MFP market in India. Demand for MFPs is increasing as they deliver enhanced functionality and productivity for an organization. Also, multifunctional devices edges over single function devices with increased adoption by small, medium size businesses as well as large enterprises. The other primary factors leading to MFP adoption are higher level of efficiency, lower total cost of ownership (TCO), high quality prints, ease of use and value the MFPs offer. Multifunction color laser printers possess true multitasking ability while also giving one the competitive advantage of color, when your work demands it. With a multifunction color laser printer, one can create, communicate and collaborate,” said Balaji of Xerox India.

“ These days, MFPs have in-built capabilities that enable printing from cloud and mobile devices. MFPs these days help workplaces of all sizes increase productivity and sustainability efforts significantly and are a true enabler of BYOD scenarios with outstanding security features. Seeing this market opportunity, we had launched Docucentre SC2020 and ConnectKey enabled iSeries devices earlier this year.All these devices come packed with exciting features of security, cloud and mobility and we have seen good traction for these in India,” he added further.

“ Although printing is the basic requirement in HOME, SOHO, SMB and Corporate segments, the requirement for photocopying and scanning of documents has been increasing by the day. Hence, customers prefer to usea Multifunction device rather than a single function device.

And most of the multifunction devices come with automatic document feeder which is very convenientfor photocopying and scanning.  The ease of use, affordable price and growing requirements of copying and scanning will keep ensure the growth of MFD market,” concluded, Mr. Siva Kumar K – Deputy General Manager IJP, Sales & Marketing, Epson India. 

Key Market Trends

“Although printing is the basic requirement in HOME, SOHO, SMB and Corporate segments, the requirement for photocopying and scanning of documents has been increasing by the day. Hence, customers prefer to use Multifunction device rather than a single function device. And most of the multifunction devices come with automatic document feeder which is very convenientfor photocopying and scanning.  The ease of use, affordable price and growing requirements of copying and scanning will keep ensure the growth of MFD market,” said, Siva Kumar K – Deputy General Manager IJP, Sales & Marketing, Epson India.

Jolly of Toshiba India pointed out  Customers demand more Solution based approach to address their complex document work flows and high demand of MPS (CAPex to OPex)  are the key market trends.

“The printing industry is evolving rapidly, largely led by the growing need for adoption of new technologies. Today, the print providers need to do much more than matching hardware specifications and ensuring high quality output; options like printing from cloud, mobile printing, storage solutions etc. have become a must in the MFP space today. Vendors are constantly updating their offerings with new software specifications to meet these growing demands. Software is starting to play a significant role in the global MFP market today and will continue to shape the future of the overall hardware ecosystem,” said, Balaji of Xerox India.

Challenges to market growthMr_Siva_Kumar

According to Shiva Kumar of Epson India, We don’t see many challenges; instead we find a lot of opportunity for growth. Make in India and Digital India will help in creating new opportunities and promise to help the market grow. The challenges or major threat we have been facing is from counterfeit consumables. Counterfeit Ink causes issues in print quality and maintenance which can hamper the performance of printers. The manufacturer and channels need to focus more on addressing the counterfeit issues and need to ensure that customers receive and use genuine consumables.

“Reduction in Government purchase, Strong price competition and Easy availability of Refurbished machines,” said, Jolly of Toshiba India.

“A major challenge to the growth of printing industry in the Indian market is the sale of counterfeit goods. In relation to the printing industry, there is a huge counterfeit market of supplies. Xerox has undertaken various steps at a global level to help curb sale of counterfeit supplies. Another key challenge is customer knowledge. With advancement in technology, customers today want to do much more than just print. With mobile printing, cloud, advanced security features etc. becoming more popular, we will see more such application development becoming a focus area for companies in the coming times. The challenge, however, will be to see how customers adapt to these growing technological changes and secondly, how companies cater to different needs of their customers,” said, Balaji of Xerox India.

“ To cater to these challenges, we regularly organize training programs for our channel partners and educate them on how the market is changing and how Xerox is looking to help consumers by building new technologies and making work simpler. We help consumers concentrate on their business rather than being worried about printing requirements,” he further added.

 Role of Channel Players

“ Due to stiff competition, channel plays a vital role to ensure wider market coverage so as to offer better pricing and product availability to end users,” said, Jolly of Toshiba India.

“ Channel is a very integral part of Epson’s growth story. Ms. Nalini JollyOur long-term strategy involves working closely with selected partners who have a thorough understanding of how Epson products and technologies work. Channel partners play a crucial role in carrying the latest trends, technology and products to the customers across the country. They are educated and trained about benefits of the product during one to one interactions or through channel meets and live demos.  This helps the channel in educating& giving appropriate recommendations to customers. Since the channel is a major influencing factor for promoting the product, the growth factor of any company depends on channel strength and their passion towards the brand,” said, Siva Kumar K– Deputy General Manager IJP, Sales & Marketing, Epson India.

“ Channel partners are spread across the country and hence they constantly share updates on the market demands, need and customer feedback. This helps the businesses in delivering the best to their customers. At Xerox, we have a 150+ strong channel partner network in India that provides a backbone to our business to ensure consistent good work. We have seen a 10-12% growth in channel partner numbers in FY16 and we attribute this success to the new initiatives undertaken towards channel development and improvement of our partners’ profitability in the past few years. We rely on our channel network to stay updated with the market feedback, customer expectations and a lot more,” said, Balaji of Xerox India.

Market Opportunities and Threats Faced by the vendors

Market opportunities are immense as we find the market expanding across all geographies. We are noticing more growth opportunities in Tier 2 & 3 markets as compared not to the developed cities. Retail, SOHO and Health care industries are expanding rapidly, thereby increasing market growth for MFD. We don’t see a threat in the growth aspect of MFD apart from counterfeit consumables,” said, Siva Kumar K – Deputy General Manager IJP, Sales & Marketing, Epson India

“Toshiba’s latest award winning e-STUDIO line represents our most innovative and intuitive MFPs to date. Understanding that every industry has unique needs, we integrated state-of-the-art and customizable technology into our new MFP line to meet the complex demands of today’s business users. All of the features are designed to help organizations operate more efficiently and cost effectively while improving workflow. With this and adding to our strong channel base, we are confident that market share for Toshiba will increase,” said, Jolly of Toshiba India.

“The Indian Small and Medium Enterprises (SME) sector holds huge market opportunity for the MFP market in India. The sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. SMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country. The sector, through more than 6,000 products, contributes about 8% to GDP besides 45% to the total manufacturing output and 40% to the exports from the country. About a decade back, SMB players were conservative in their IT spending but today the situation has changed totally and firms have realized the need and significance of IT for their growth,” said, Balaji of Xerox India.

“ Our devices like Docucentre SC2020 and ConnectKey-enabled i-Series are a great fit for this segment and this is clearly going to be a focus area for the next few years for us. We are also gearing up to launch multiple new products and upgrades in 2017. A major threat that is faced by the MFP market is that they are susceptible to malware and hacker attacks. MFPs handle large volumes of data and unauthorized access to this stored data could reveal sensitive or confidential material. There is a need to properly lock down the MFPs, but traditionally there has been a limited availability of printer security solutions. Xerox MFPs with the ConnectKey software uses the industry’s first embedded security protection from McAfee, giving IT managers more control and peace of mind. ConnectKey MFPs also have an extra layer of security with Cisco’s TrustSec, which protects data paths to and from the devices,” Balaji further added.

“Canon offers products to enterprises across verticals, corporate, and government to add value to their businesses and maximize their profits. Our range of products, like the Canon imageRUNNER C3300 series also exemplify our commitment to innovation and world class technology At Canon, we understand and nurture our partners since they play a crucial role in making the company one of the leading brands in India. For our MFP’s also, we are closely working with them on expanding our business in tier-2 and tier-3 cities,” concluded, K Bhaskhar, Vice-President, Business Imaging Solutions (BIS) division of Canon India;

Finally

With a multifunction color laser printer, one can create, communicate and collaborate. Also, multifunctional devices are edging over single function devices with increased adoption by small, medium size businesses as well as large enterprises. Multi-Functional Devices have gone a long way in providing complete communications hub for enterprises. Organizations these days are well versed with concept of MFPs and the benefits that they can offer. They are aware about the entire gamut of document management services and are constantly on a look out for more and more applications of the same product. This has resulted in technology vendors focusing not just on products but on service offerings too.

HIGHLIGHTS

Mr. Balaji Rajagopalan, Executive Director, Technology, Channels & International Business, Xerox India

Adoption and demand of all forms of MFPs has certainly been on a rise since the last decade and this is largely led by SMBs and their need for one device being able to perform multiple tasks.  Xerox has a slew of MFPs that can cater to multiple needs of the customers and we believe both the laser and the inkjet MFPs will continue to co-exist. There are specific markets that are catered by inkjet and laser, therefore as a result both will continue to exist in the near future. We have a range of inkjet and laser MFPs – all doing well in the market.”

Ms. Nalini Jolly, General Manager – Business Solutions Division

Toshiba’s latest award winning e-STUDIO line represents our most innovative and intuitive MFPs to date. Understanding that every industry has unique needs, we integrated state-of-the-art and customizable technology into our new MFP line to meet the complex demands of today’s business users. All of the features are designed to help organizations operate more efficiently and cost effectively while improving workflow. With this and adding to our strong channel base, we are confident that market share for Toshiba will increase.”

Mr. Siva Kumar K – Deputy General Manager IJP, Sales & Marketing, Epson India

“Channel is a very integral part of Epson’s growth story. Our long-term strategy involves working closely with selected partners who have a thorough understanding of how Epson products and technologies work. Channel partners play a crucial role in carrying the latest trends, technology and products to the customers across the country. They are educated and trained about benefits of the product during one to one interactions or through channel meets and live demos.  This helps the channel in educating& giving appropriate recommendations to customers. Since the channel is a major influencing factor for promoting the product, the growth factor of any company depends on channel strength and their passion towards the brand,”

K Bhaskhar, Vice-President, Business Imaging Solutions (BIS) division, Canon India

 “With the evolution and advancement of technology in the printing industry, vendors have shifted their offerings to a comprehensive solution based package than only focusing on printing, scanning and fax needs. The multi-function devices are equipped with intelligent applications to cater to the important needs of the organizations. Concepts like mobile printing, Wi-Fi, green printing & cloud have evolved in past few years. Keeping these trends in mind, Canon offers products to enterprises across verticals, corporates, and government to add value to their businesses and maximize their profits. Our range of products, like the Canon imageRUNNER C3300 series also exemplifies our commitment to innovation and world class technology.”

LEAVE A REPLY