Opportunities
in Digital Print

Roger Christiansen
Market Development Manager
Ricoh Europe

Version: [3.3] Classification:...
Agenda

European
Market overview

Direct Mail

Summary
Promotional

Books

2
Market
overview

3
The Total Value of the PP Market
Significant market opportunities in digital
Western Europe Print Market
€ Millions
90000
...
Top digital applications in Western Europe

Source: Infotrends - Western
European Digital Production
Printing Application ...
What’s
happening in
the Books
market?

6
Books - drivers

7
Books - drivers
Volume decline drivers

Volume growth drivers

• Flat to declining demand for books
overall

• Shorter run...
Your opportunities in books ?

Print on demand
• reduce warehousing costs
• make money from backlist

Local production / D...
Print on demand in action….

Author

Publisher

Printer

Distributor

Book Store

 Excessive waste if publisher prints to...
What’s
happening in
Direct Mail ?

11
Direct Mail - drivers

12
Direct Mail - drivers
Volume decline drivers

Volume growth drivers

• Move to other forms of direct
marketing

• More tar...
Big data, small communications
Print

Profiling

Data
Digital

Targeting

Greater
personalisation

Effective
communication...
Your opportunities in Direct Mail ?
Full colour variable data solutions
• improve response rates
• provide more targeted c...
Cross media marketing in action

PURL

Online

CUSTOMER
EXPERIENCE

Recipient updates
personal data
Mobile
Device
Order
co...
What’s
happening in
Promotional
print ?

17
Promotional print - drivers

18
Promotional print - drivers
Volume decline drivers

• Electronic billboards replacing posters

• Regulations against out o...
Your opportunities in Promotional print?
Cost-effective solutions for short run (existing business)
• excellent quality (e...
Summary
Next actions

21
Summary
• Offset is declining, and
digital is growing but by
2018 79% total market will
still be Offset (Pira)
• Lots of c...
Thank you

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Opportunities in Digital Print

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Presentation at the Ricoh Belgium Production Printing Workshop January 29th 2014

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  • Good morning/afternoon.
  • Ricoh’s portfolio has expanded considerably in recent years and is growing fast, fuelled by considerable R&D investment.
  • However this is only scratching the surface of the potential opportunity for us in Europe. Digital EP (aka Laser) and Inkjet are growing at 71% and, between them will represent a 23.170 M Euro opportunity by 2015.
  • Ricoh’s portfolio has expanded considerably in recent years and is growing fast, fuelled by considerable R&D investment.
  • This slide has four “builds” in it.As the slide opens it shows that there is a minimum order for the number of books that can be produced using offsetClick 1: (Black dotted line) This is a typical demand curve for a popular book. Demand begins low, builds to a peak and then tapers off over time.Click 2: (Red slope) If the publisher orders too many books, they do not all sell and wind up either in inventory or being turned into wood pulpClick 3: (Green slope) Sometimes, and not very often, the publisher guesses correctly and they run out of books just about the time that public runs out of interest in the bookClick 4: (Blue slope) If the publisher orders the minimum they run the risk of running out of books before people stop demanding the book. At this point there isn’t enough potential interest left to justify an economical offset press run. The result is lost revenue, angry bookstores, angry book distributors and angry authors.The fear of running out of books is so great that they always(!) over print.Click 5: The better and safer strategy is to print in quantities just large enough to have the books printed at the best price. When that supply runs out the remaining demand can be satisfied by a series of short runs on digital equipment.Click 6: With zero inventory and a digital print model in place the books never go “out of print”, “out of stock” or “out of stock indefinitely” the ability to continue to satisfy this lingering demand is called the Long Tail and represents an endless risk-free source of continuing revenue
  • Ricoh’s portfolio has expanded considerably in recent years and is growing fast, fuelled by considerable R&D investment.
  • Many brands, operating in highly competitive global industries, are looking for new ways to create a competitive advantage. Hence marketing teams in corporate businesses are now trying to harness the big data they have access to in order to gain unique insights into their customers’ behaviours, buying patterns and sentiments. From this data they will use segmenting, profiling and targeting techniques to create the right message for the right person at the right time. CLICKAnd the detailed insights from big data can allow greater personalisation in multi-channel communications activity, spanning a range of media to reach and engage with consumers effectively.This is using big data for small, or highly targeted, effective communications. A highly value-added service as far as a Corporate Marketing team is concerned. And an opportunity for the progressive PSP.
  • As stated earlier, consumers today want to receive communications through a variety of channels: online and offline. Therefore Ricoh offers a range of powerful tools that help PSPs provide options for clients wishing to deliver cross media marketing solutions. A key element of the solution is that PSPs can create one campaign yet deliver the message across multiple channels in a consistent way: PrintPersonalised URLsQR codesOnlineDigital.CLICKAs a result, the PSP can deliver for their client a consistent customer experience. You can see here how the process for a typical cross media campaign unfolds, which also enriches the brand’s database with the recipients’ data.
  • Ricoh’s portfolio has expanded considerably in recent years and is growing fast, fuelled by considerable R&D investment.
  • Ricoh’s portfolio has expanded considerably in recent years and is growing fast, fuelled by considerable R&D investment.
  • Opportunities in Digital Print

    1. 1. Opportunities in Digital Print Roger Christiansen Market Development Manager Ricoh Europe Version: [3.3] Classification: In Confidence Owner: [Graham Moore]
    2. 2. Agenda European Market overview Direct Mail Summary Promotional Books 2
    3. 3. Market overview 3
    4. 4. The Total Value of the PP Market Significant market opportunities in digital Western Europe Print Market € Millions 90000 80000 80949 70000 2009 2015 60000 68946 2018 Worldwide 50000 40000 30000 Inkjet 6890 20000 Digital 4113 10000 16280 9453 0 Offset Pira - The Future of European Printing to 2015 Market Forecast. Includes print machinery, ink, paper and board Digital EP & Inkjet
    5. 5. Top digital applications in Western Europe Source: Infotrends - Western European Digital Production Printing Application Forecast: 2010-2015
    6. 6. What’s happening in the Books market? 6
    7. 7. Books - drivers 7
    8. 8. Books - drivers Volume decline drivers Volume growth drivers • Flat to declining demand for books overall • Shorter runs • Reluctance of publishers to change business and production models • On-demand business models becoming possible • Encroachment of e-books into physical book sales • Drive to reduce storage and obsolescence costs • Improvements in digital printing technologies, especially in continuous-feed inkjet 79% of jobs in 2011 fell into a category of production volumes under 5,000 - which is suited to digital production. (Source: Pira) 530,000 new titles in print in 2011 – growth of 8% since 2007* 8,500,000 titles in print in 2011 – growth of 51% since 2007* *Source: European Book Publishing statistics Nov 2012 8
    9. 9. Your opportunities in books ? Print on demand • reduce warehousing costs • make money from backlist Local production / Distribute and print • minimise / eliminate distribution costs • sustainability • opportunity to localise Multi-platform • opportunity to add value to printed books, • link to digital Copyright Ricoh Europe PLC 2013
    10. 10. Print on demand in action…. Author Publisher Printer Distributor Book Store  Excessive waste if publisher prints too much  Very effective if they print the right amount (rare)  Lost revenue, unhappy authors, and empty Nº of Books in Inventory book store shelves if they print too little  Digital reprints - shorter runs with less risk  The long tail – the end of out of stock Minimum Offset Run Length Original drawing by Duncan Original drawing Newton By Duncan Newton Time Waste Lost Revenue
    11. 11. What’s happening in Direct Mail ? 11
    12. 12. Direct Mail - drivers 12
    13. 13. Direct Mail - drivers Volume decline drivers Volume growth drivers • Move to other forms of direct marketing • More targeted mailings, personalisation • Increase in postal costs • Still growing in some European markets • Detrimental image of direct mail as junk mail • Enabling white paper solution through ultrahigh volume digital colour print • More targeted mailings, personalisation 13
    14. 14. Big data, small communications Print Profiling Data Digital Targeting Greater personalisation Effective communications Mobile Segmenting Social media Value added services Copyright Ricoh Europe PLC 2013
    15. 15. Your opportunities in Direct Mail ? Full colour variable data solutions • improve response rates • provide more targeted conversations with their clients • combine with colour digital to create personalised communications Cross Media marketing • consistent customer experience across multiple channels • integrated communications Marketing Asset Management • centralises the management of marketing assets (such as brochures, collateral and flyers) enabling customisation and personalisation Copyright Ricoh Europe PLC 2013
    16. 16. Cross media marketing in action PURL Online CUSTOMER EXPERIENCE Recipient updates personal data Mobile Device Order confirmation DATABASE Copyright Ricoh Europe PLC 2013
    17. 17. What’s happening in Promotional print ? 17
    18. 18. Promotional print - drivers 18
    19. 19. Promotional print - drivers Volume decline drivers • Electronic billboards replacing posters • Regulations against out of home advertising Volume growth drivers • Shorter runs, regionalisation, and versioning • Growing overall demand • Underserved demand from microbusinesses, which can now be served by digital print • Shorter runs, regionalisation, and versioning • Message overload ! • Creativity ! • 12,500 printed Point of Purchase in a typical supermarket • New applications • New markets • Or 4 per second 19
    20. 20. Your opportunities in Promotional print? Cost-effective solutions for short run (existing business) • excellent quality (extra process colours) • Piezo Inkjet technology (becoming dominant in WF digital print industry) • Strong environmental benefits New applications • Versioning • Test marketing • Regionalisation New Markets • Micro brands • In store promotions • Creative ideas ! Copyright Ricoh Europe PLC 2013
    21. 21. Summary Next actions 21
    22. 22. Summary • Offset is declining, and digital is growing but by 2018 79% total market will still be Offset (Pira) • Lots of challenges in the market • Lots of change and disruption • One man’s threat is another’s opportunity • Creates opportunities for Print Service Providers • New challenges: how do you make money from short runs ? • Focus on niche opportunities = bad news for existing business models • Are you a printer or a service provider ? 22
    23. 23. Thank you Questions?
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