New and emerging business opportunities for printing businesses

New and Emerging Business Opportunities

Hagop TchamkertenianNational Manager for

Policy & Government Affairs

New and Emerging Business Opportunities

Presentation Overview: • Why change in necessary

• Interesting internet trends

• The impact of the Internet

• Technology and people

• The mega trends

• Emerging opportunities

• New business opportunities survey results

• Industry forecasts

Why change is necessary?

Why change is necessary?

• Content is now being distributed across multiple-communication mediums• To be successful in the emerging content distribution web, print must evolve to become part of an integrated communication channel• Print needs to compliment not compete with emerging mediums

Critical Considerations• “So much of what marketing and communications have become today

is less about producing something on a device, and more about thinking strategically about how different media and communications channels interact with each other”

• “The nature of each media channel doesn’t change, but different factors such as the type of business, size of business, whether they’re B2B or B2C, the intended audience all determine the mix of channels to use”

Extracted from Getting Business by Joseph Webb and Richard Romano

Interesting Internet Trends

• There are now 2.4 billion Internet users around the world.

• More than 500 million photos are uploaded and shared every day.

• About 100 hours of video is uploaded to YouTube every minute.

• Mobile internet traffic as a percentage of all internet traffic is expected to continue growing one-and-a-half times per year; It’s currently 15%.

• Smartphone users check their devices about 150 times a day.

The Impact of the Internet

• Similar pressures in Australia

• Australia Post is also pursuing the email/internet option

• According to Australia Post total mail volumes are declining

• Utilities, Telco's and other large billing entities are pushing people towards on-line platforms

The Impact of the Internet

• Over the next 5 years Printed trade book sales is expected to decline by a CAGR of 5.2 percent

• Electronic trade book sales to increase by a CAGR of 15.2 percent, and will account for 26 percent of all trade books purchased in Australian bookstores

Technology and People Skills Remain Key Factors

• A study of more than 1,700 CEO’s across 18 industry sectors in 64 countries shows that of all the external forces that could impact their organisations over the next 3 to 5 years, CEOs now view technology change as most critical.

Source: IBM 2012 global CEO study

The Mega Trends

• Rise of digital – not just short run work but printing of documents, books and labels

• Digital and offset being used as complimentary technologies

• Web to print• Increased automation (workflow)• Training and ongoing skill development• Finishing work and special applications (differentiation) • Environmentally friendly production (green

printing)

Emerging Opportunities

• Web to print• QR codes• Augmented reality• Charging market rates for prepress, post press,

storing/archiving files and materials for clients• 3D printing• Personalised printing (PURLs)/variable data printing• Multi-channel marketing (cross media)• Social media • Functional printing (RFID labels-packaging)

New Business Opportunities Survey

Background:

• On-line survey• Second year of the survey• Survey conducted during April/May 2013• Distributed to members• 131 responses making it statistically valid


What best describes your current operations?

• Printing business 77.1% (73.9%)• Services to printing 9.2% (8.7%)• Communications services 3.8% (8.7%)• Solution provider 5.3% (4.3%)• Supplier to printing 4.6% (4.3%)

Note: Results represented in ( ) refer to last years results


•Offset still dominant process but digital is now significant

New Business Opportunities SurveyGiven the rapid changes in technology and consumer purchasing behaviour and preferences, has your business responded to accommodate these changes?•75.6 % answered yes (87.4% )When did the change occur?•Last 12 months 16.5%•Last 2 years 29.7%•Last 3-5 years 37.4%•Last 5-10 years 16.5%•More than a decade ago 0.0%

Have you changed the business name/branding to reflect the new business model?•33.7% replied yes; 51.1% replied no; 15.2% no but considering•(27.7% replied yes, 49.4% replied no, 22.9% no but considering)Note: Results represented in ( ) refer to last years results


•Focus of change has accelerated and process change has a slight edge over structural change

New Business Opportunities Survey• Increased digital printing take-up• Investment in technology – faster make ready times, increased operational speed,

greater automation• Web to print solutions• Investments in wide format printing• Embracing new distribution channels• Multi-channel marketing• Digital mail/post• Mailing services• Websites, development of Apps• Workflow improvements to accommodate rapid turnaround times, MIS systems• Investments in finishing• Warehousing and logistics• Niche market and innovation


•82% of respondents indicated that they derive 50% or more of their revenue from traditional areas, up from 72%


•Declining reliance on traditional printing and related activities is shown

New Business Opportunities SurveyDo you offer non-printing related services to your clients?• 65.5% said yes (73% said yes)Do you offer any of the following?

Mobile Barcode Scanning

• Males outpace females 2 to 1 in the scanning of mobile barcodes (65% v. 35%).

• Nearly six in 10 (57%) of mobile barcode scanners were aged 35 and older in Q1 2013, up from 41% a year prior.

• Most scanned QR Code campaigns are connecting users to product info followed by social media, mobile commerce, video, and digital coupons.

• Top industries, in terms of scanning activity: retail, food and beverage, wireless, print, and toys

Source: ScanLife, Mobile Barcode Trend Report Q1 2013, May 20, 2013.

http://www.scanlife.com/trend-reports

Other non-Printing Related Services Offered

• Design • Marketing advice/campaigns• Signage • Flatbed• Printing on new materials• Document data capture• E-publishing, • Finishing services• Warehousing and logistics• Mailing and distribution• Web services• Phone apps• Database management• Promotional items marketing• High end packaging



• Almost 33% of respondents indicated that they derive more than 20% of their revenue from non-traditional printing activities, up form 22% response last year


Do you offer web to print purchasing platform?• Yes – 35.4 % (35.6%)• No – 47.8% (38.4%)• Considering – 16.8% (26%)

Proportion of revenue derived from web to print• <Up to 10%> - 39.0% (57.1%)• <10-20%> - 22.0% (25.0%)• <20-30%> - 26.8% (10.7%)• <More than 50%> - 7.3% (7.1%) Note: Results represented in ( ) refer to last years results


As a proportion of total revenue has there been an increase in revenue derived from web to print?• 31.1% said yes (31.5% said yes)• 51.4% said no (40.7% said no)• 30.3% were uncertain (27.8 % were uncertain)

Cost of setting up web to print platform?• Responses ranged from $5,000 to $250,000

Investment in web to print provided satisfactory ROI?• 50% said yes (45.7% said yes)

Note: Results represented in ( ) refer to last years results

Industry ForecastsOver the next 12 months: Over the next 3 years:

Do you expect your business to grow?

Yes No Yes No

47.6% 52.6% 73.7% 26.3%

Do you expect your business to employ more staff?

Yes No Yes No

28.1% 71.9% 47.4% 52.6%

Do you expect your business to train more staff?

Yes No Yes No

46.5% 53.5% 52.6% 47.4%

Do you expect the industry as a whole to grow?

Yes No Yes No

15.8% 84.2% 27.2% 72.8%

Source: Printing Industries New Business Opportunities Survey

Key Findings

• Key theme is one of embracing change. The world we operate in is constantly changing and printing businesses must be guided by this fundamental principle

• Technology remains a key driver of change• Rise of digital and automation are changing the industry

landscape• Printing will evolve into a low volume customer focus

industry• Cross media marketing is the platform for engaging

customers

Key Findings

• Most printers continue to view themselves within the traditional prism of print manufacturers

• Yet less reliance on traditional printing activities• Offset remains the dominant process but digital is now

significant and has the momentum• Focus of change remains on process (technology) as opposed to

structural (business refocussing)• Response to change has seen take-up of digital process, wide

format, multi-channel marketing, finishing, logistics, niche markets and innovation, web to print

• Cost control by way of automation, workflow improvements, investment in MIS systems

Key Findings

Non-printing related service offerings:• Design • Marketing advice/campaigns• Finishing services• Warehousing and logistics• Mailing and distribution• Web services• Phone apps• Database management

Almost 33% of respondents derive 20% or more of their revenue from non-printing related activities up from 22% a year ago

Some Concluding Comments

•All major steps start with some level of discomfort. That’s how we grow – as individuals, as professionals and as businesses.

•Opportunities exist for those willing to embrace change!

Thank you

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