Talk given by strategy boutique leader Justin Hayward at FESPA on 16 March 2016 in Amsterdam on digital UV label printer customer insight based on a recent survey.

1. Justin Hayward
Digital printing for the Labels Industry
Market study insights Q4 2015
Cambridge Investment Research
9 March 2016
FESPA 2016 Amsterdam
www.cir-strategy.com
@haywardcir
@hvmconference

2. Core question
What is the value of digital labeling product and service offering to customers?

3. 28 interviews with labelling PSPs
achieved by CIR Q4 2015
UK#
41%#
Europe#non#
UK#
29%#
USA#
30%#
Other#
0%#
Geography

4. What end user markets does this sample of PSPs mainly sell to?

5. Ranking Importance of Aspects of Digital: unprompted*
Unprompted Importance Rankings N = 28
State what
aspects you value most, in order of importance, about the digital labeling machines and services provided
Rank Aspect of digital % mentions 1st – 4th
Total “on client
mind” score
1st Print
quality
67%
53
2nd Turnaround
4me
for
delivery
41%
32
3rd Reliability
30%
23
4th Short
&
medium
runs
22%
20
5 Flexibility
26%
18
6 Cost
of
consumables
19%
16
7 More
variants
of
print
19%
13
8 Print
colour
matching
26%
13
9 Speed
15%
11
10 Technical
support
26%
11
11 Less
waste
15%
9
12 Set
up
&
changeover
4me
15%
9
13 Integra4on
with
customers
7%
8
14 Colour
management
&
workflow
4%
1
15 Opacity
via
white
ink
4%
1
* Ranking analysis built from the phrases used by the customer PSPs

6. • Print quality remains top of pile of factors
• Promising fast turnaround confidently is key to them
• Productivity is holistic
• Speed | Uptime | Availability | Workflow with machines and customers
In the minds of customers: Summary

7. Ranking Importance of Aspects of Digital: Prompted
Prompted Importance Rankings N = 28
Rank the 14 factors
Interview/survey verbal help used: 1 = Highest importance/value, 14 = Least importance / value
Chart constructed by inverting the average scores as y = 14 / (avge score)
-
1.00
2.00
3.00
4.00
5.00
6.00
7.00
Prompted Importance-to-customer score*

8. • Faster safer turnaround times promised to customers
• Higher uptime via reliability
• Better software for customer integration & workflow
• Faster preparation & finishing systems
• Running costs
• Printer grasp of inkjet ink costs vs reduced costs of plates and wastage vs
click charges
Principle factors for increase in utilisation of digital from customer
interviews

9. • Inkjet performs very well with customers against both flexo and toner
• Colour digital labels is expanding so that an ever-higher % of printers will own it
• the number of machine types and machines per printer is also increasing
• Customers are demanding faster and more flexible turnaround
• Shorter runs (more “SKUs”) are needed
• This means more complexity in the workflow: which machine | when | when
ready?
• Limiting factors for IJ not currently of line speed but of software & finishing
Observations from customer interviews

10. Cambridge Investment Research
example clients
Cambridge Investment Research
www.cir-strategy.com
jhayward@cir-strategy.com
+441223303500