How Will Digital Printing Change the Packaging Industry · SHORT RUN capability of digital ... like piloting, test marketing, product launch & ramp -up . ... Personalised Nutella

© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

How Will Digital Printing Change the Packaging Industry

Jan Van Daele WW Brand BPO manager HP Graphics Systems Business

© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 2

Everything that can become digital will become digital.

Printing is no exception

Benny Landa, founder of Indigo - 1993

(Packaging)


What is dif ferent in digital print ing?

Analogue print ing Every cycle duplicates the image from a plate • Each color requires a specific plate and print set-up • Litho or offset dominant in folded carton • Flexography dominant in corrugated boards

Digital print ing No plates, every page can be dif ferent • Hence, no make-ready on the press • All individual colors are applied in a single set-up • Inkjet or toner-based • Inkjet is contactless (“from pressing to painting”)


DIGITAL PRINTING – why a game changer?

Value of digital print = a mix of 3 assets

FAST t ime to market

Every pack DIFFERENT

Drive digital t ransformat ion for “value” , not “volume”

SHORT-RUN capable







SHORT-RUN capable


Brand’s pain points

• More product launches • More private label products & versioning • More dif ferent iat ion on the shelf • From mass market ing to “my market ing” • Higher print qualit ies at lower cost • More shelf-ready packaging • Shorter turn-around-t imes and t ime-to-market • On-demand and JIT delivery • Environmental compliance and food safety

FROM

TO

All trends driving towards shorter runs


Break-even run =

no more plates, no more press make-ready & minimum set-up waste

SHORT RUN capability of digital

assuming press amortization and substrate costs to be similar

Job set-up costs analog

“ Ink” cost / unit digital ~

Product ion costs (excl. substrate)

Quant ity within run

Break-even dig-of fset dig-f lexo

Set-

up co

st

Example: • start costs of € 1 000 traditional, against € 10 ct digital ink/copy: • cheaper digitally below quantities of 10 000


Job basket analysis as tool to optimize productivity

Migrate short-runs to digital press

1. Shorter runs produced cheaper digitally

2. Higher product ivity of

t radit ional press while fewer change-overs

total sqm = 89.635.007

# jobs = 7.985

avg sqm/ job = 11.225


Eliminate waste and obsolescence using smaller batch sizes

Do it smarter, opt imize supply chain

Use digital for short runs, like piloting, test marketing, product launch & ramp-up

Use digital to facil itate design changes, while avoiding overstock & scrap

Use Print -on-Demand and Just-in-Time-delivery to reduce warehousing costs

0% 20% 40% 60% 80% 100% 120% 140% 160% 180%

Unit cost, per unit produced conventionally Unit cost, per unit produced digitally

Unit cost conventional, per product unit sold … Unit cost digital, per product unit sold …

instead of comparing unit product ion cost , compare unit cost per product sold

TIP







SHORT-RUN capable


Convent ional workf low

Digital print workf low leading to faster t ime-to market


Overprint inline as fastest track, digital labels as best alternative

Faster market response

Standard process

Digital labels

Overprint inline

100% Digital

Analog labels

New design, plates & proof

Print & convert

Ship to packer

Store Distribution & retail

Ship to distribution

Pack Store

16 weeks start


High-value gifts, in attractive personalized package, home-delivered in “ hours”

GTM Disrupt ion for e-sales

• Based on local stock of pre-packed standard items • Applying personalized secondary pack (carton box or sleeve, flow pack, big label,…) • Either for promo packs or gift packs • Can be individually customized (all different based on certain pattern) or personalized

(eg. name + uploaded picture) • Shipment by mailing directly to customer

Webstore order

Auto-queue for print ing

Fill box

Mailing

At consumer







SHORT-RUN capable


T

Thousands of brands t rying to at t ract consumer’s at tent ion

Be unique by treating customers

as unique


Make it personal Do it dif ferent ly

From mass market ing to my-market ing

Localize Segment

Versionize Randomize


Improve t rack-and-t race and authent icity

• Every pack with unique code • Invisible digital watermark • Smart labels • Variable data Cryptographs

Do it smarter


Share a Coke…

• 800 million high-Q personalized labels • A combination of both digital and analogue printing • Randomised distribution of named labels across multiple retail outlets

Only digital could bring the required on-shelf randomisat ion


Personalised Nutella Jar

Who said that touching a logo is sacrilege? A new typeface was created, so each name got « nutella branded »

Value of personalization: Regular pot: € 3,50 Personalized: € 6,00


Created with HP Mosaic - Dynamic Personalization software Printed on HP Indigo and HP Scitex presses

Millions of one of a kind….

2.1% increase in sales, as well as a 3% increase in brand preference.


'Bru’s Your Clan' campaign

Presenter

Presentation Notes

The most popular real clan tartans were researched and fifty were applied to fifty different bottles to create a stunning display and celebration of being Scottish.





SHORT-RUN capable

Value of digital print = mix of 3 assets


New class of vendors: Fujifilm, Xerox, Canon, HP,…

Digital presses for f iber-based packaging


HP packaging print port folio Empowering packaging converters with innovative solutions that satisfy brand owners

HP T400 Simplex HP T1100 Simplex

HP Indigo 20000 HP Indigo WS6600 HP Indigo 30000 HP Scitex FB15000 • 1350 Indigo label presses

installed • Web fed • Format: 317 x 980 mm

• Introduced at Drupa 2012 • Web fed • Format: 737 x 1092 mm

• Introduced Drupa 2012 • Now in full deployment • Sheet fed • Format: 739 x 511 mm

• > 300 Scitex flatbed

presses installed • Piezo inkjet • Sheet fed • Format: 1600 x 3200

mm

• >130 T-presses installed • Inkjet web press • Pre-print and litho-lam

corrugated • Paper bags & light cartons • Up to 2800 mm wide

High volume packaging Folding cartons Labels Flexible packaging Displays & value boxes

High volume, production run boxes, from brown box to high quality coated media

Folding carton boxes & sleeves, blister cards, micro-flute

Pressure sensitive, glue applied and in-mold labels, shrink sleeves

Pouches, pillow packs, sachets, lids

High quality displays, large format, short run bespoke boxes


Digital press solut ions for corrugated

Presenter

Presentation Notes

If we take the current HP portfolio as a reference, we can see 3 basic offerings, all starting to have inroads into corrugated. It is not yet on a massive scale, it is juts the beginning. We have the HP Indigo product range with its better than offset image quality, and now recently also available in B2 format. It is the perfect digital replacement of high-quality offset for litho-lamination or litho-label applications. Then there is the Inkjet web press, which is using aqueous inks and run very well on uncoated substrates. With current web width of max 42”, it can be used either as a replacement of flexo pre-print or for base quality litho-lam. Then 2 flatbed solutions, the big FB7600 and the smaller FB700: piezo inkjet flat bed presses that use UV inks and produce from 25 to 100 sheets/h. They are a replacement of the flexo postprint, but in their direct-to-corrugated capability they are also a replacement of base-quality litho-lamination applications.


Jetcomm = GA’s global user group dedicated to HP Inkjet Web Press Solutions.

Announcement at 1st Jetcomm, Mar 4, 2015


When launching a project :

Technically, almost everything is possible You must have a match between cost of change, versus consumer’s added value / premium pricing and total cost reduction. You need a local champion The possible changes required have a business impact in many areas. Someone who sees the overall value needs to address them.

It is not a standard job order You need to re-consider from design through to the product on shelves Your internal supply chain may need to be worked on Do not stop at the unit list price! Estimate waste you can avoid throughout supply chain Consider web-to-print to simplify ordering process

© Copyright 2014 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

Everything that can become digital will become digital, packaging print ing is no except ion

More informat ion: [email protected]




Drive digital for “value” , not for “volume”

SHORT-RUN capable

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How Will Digital Printing Change the Packaging Industry · SHORT RUN capability of digital ... like piloting, test marketing, product launch & ramp -up . ... Personalised Nutella