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New and emerging business opportunities for printing businesses
1. New and Emerging
Business Opportunities
Hagop Tchamkertenian
National Manager for
Policy & Government Affairs
2. 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
4. 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
5. 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
6. 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.
7. 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
8. 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
9. 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
10. 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)
11. 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)
12. 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
13. New Business Opportunities Survey
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
15. New Business Opportunities Survey
Given 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
16. New Business Opportunities Survey
•Focus of change has accelerated and process change
has a slight edge over structural change
17. 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
18. New Business Opportunities Survey
•82% of respondents indicated that they derive 50% or
more of their revenue from traditional areas, up from 72%
19. New Business Opportunities Survey
•Declining reliance on traditional printing and related
activities is shown
20. New Business Opportunities Survey
Do you offer non-printing related services to your clients?
• 65.5% said yes (73% said yes)
Do you offer any of the following?
21. 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.
22. 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
New Business Opportunities Survey
23. New Business Opportunities Survey
• 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
24. New Business Opportunities Survey
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
25. New Business Opportunities Survey
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
26. Industry Forecasts
Over 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
27. 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
28. 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
29. 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
30. 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!
31. Thank you
Join us for our next FREE webinar in 2 weeks: 12 July
Become More than a Printer:
Diversify your Business Service Offerings
Presented by marketing expert, Richard Pester, ADMA
Register on printnet.com.au
PLUS our Marketing Essentials Course 14 & 21 August
Our Australia-wide free Spotlight Discussion & Networking Event
on the Future of Print
Dates and Venues: Event from 5-7pm
Vic ‐ Thursday 4 July
SA ‐ Wed 10 July
WA ‐ Thursday 11 July
QLD ‐ Tuesday 16 July
NSW ‐ Thursday 18 July
For more information, visit our calendar page at printnet.com.au
or email us at support@gasaa.asn.au