Marketplace trends and the impact on UK Print Industry

Transcription

1 Marketplace trends and the impact on UK Print Industry Declan Rea 2005 IBM Corporation IBM Printing Systems POWERFUL, COST-EFFECTIVE OUTPUT SOLUTIONS 2/23/2006

2 Topics for discussion WW Industry Trends UK Industry Status Segment Trends Implications 2 IBM Output Environment

3 World Wide Trends Source Caslon Market Data IBM Output Environment

4 Mail Intensity Across Countries volumes vary 4 IBM Output Environment

5 UK Mergers, Acquisitions, Consolidation Merger activity in 2004/5 Job losses Suppliers struggling Astron Buys Edotech and Experian RRD buys Astron Deutsche Post to buy Williams Lea Source: Three headlines from Dotprint, Feb 3rd 5 IBM Output Environment

6 UK Print Industry Overall UK Print Industry has declined by 3% since 2001 PRINTING Printing of programmes, tickets etc , , , ,769 CAGR 23% Significant declines in Advertising / Direct Mail and Book printing Periodicals Printed labels 1, , , , % 5% But there are a number of sectors which are growing, including: Security printing Printing onto non paper/board % 3% Programmes, tickets Business forms % Periodicals Business forms Bookbinding Newspaper printing % -2% Graphic services % Postcards, greetings cards % Printed packaging 1,181 1, ,086-9% Other printing % Advertising literature 3,196 3,174 3,015 2,901-10% Books, brochures, leaflets etc 1,372 1,290 1,267 1,156-19% Printed paper & paperboard % Composition & platemaking % Total 13,155 12,881 12,315 12,794-3% Source: UK manufacturer sales (PRODCOM) IBM Output Environment

7 UK Digital B&W Industry Trends Direct Mail Flat Transaction volume Flat to declining due to Increased use of color Increasing use of Service Bureau s Digital Book volume in UK Migration to digital continues slowly Larger users Oxford Uni, CUP, LSI.. 7 IBM Output Environment

8 Direct mail Total UK advertising expenditure Source: DMIS Internet is growing but it s still only 2% of total spend More usage around acquisition Direct mail has been growing steadily since was the first year that DM declined. Last year UK companies spent 2.5 billion on Direct Mail. Direct mail still has best ROI for marketers Direct Mail Internet Direct Mail Cinema Radio Outdoor& Transport TV Press IBM Output Environment

9 Direct Mail Trends Emerging trends and value adds; Web integration personalized url Increasing use of relevance 3 x uplift in response rates vs personalizing Increasing vertical integration Transaction documents Future technologies Cellular phone Emerging Electronic Media: Blogs, Wikis, PODcasts 9 IBM Output Environment

10 Direct Mail Competitive Strategies Integrate Direct Marketing Components; Focus on value adds value leader in direct marketing Call center Telemarketing Response Management MICR Campaign Management Data Mining Print Management Digital color options available for Personalisation Creative Services 10 IBM Output Environment

11 Digital Book Trends Only 2% of WW monochrome book pages are digital Why? PQ Cost per book Offset efficiencies improving DI Future technologies web, ebooks, PODcasts Digital CF is now acceptable for a subset of volumes Digital CF reduces the cost per page 20-50% vs CS Run length break point continues to shrink > IBM Output Environment

12 UK Trends for Books % increase in book sales Growth predicted at 10.4% between 05 and k titles in 90, 116k in 2000, 161 in > self publishers and small publishers exploding More titles to meet needs of big box chains - quick turnover of titles with short shelf life book publishers in UK Net book agreement ended in 98, allowing retailers (vs pubs) to set prices - this is driving lower prices led by superstores. UK has highest productivity in Europe for book printing Shorter book page count and run length in Europe than US Total book market = 3.7 billion pounds in 05 Customers rank 1. TCO, 2. PQ, 3. Reliability, 4. Speed as biggest concerns w digital InterQuest study; The Digital Book and Manual Printing Opportunity - Oct IBM Output Environment

13 Emerging Strategies for Books 3 models Short-run Printers uses digital to compliment offset web and cutsheet to provide a mix sell to publishers - ie mix the higher print cost of digital with the lower supply chain costs for certain volumes - become a one stop shop, Versioning Printers publishes updates eg.updated legal chapters vs the whole book, another example is flight manuals Variable End customers are demanding truly variable docs - such as financial, real estate, customized manuals for cars, or like exam papers that are highly versioned but also variable due to tracking id numbers Integrate litho workflow and prepress with digital Leverage PDF and JDF 13 IBM Output Environment

14 UK Print Industry - implications Focus on niche areas Develop value-added services that differentiate Tight cost control - Right first time Audit trails for increasing industry regulations Drive for Standardization JDF, PDF, UP3i, AFP Increasing need for automated workflows Multi-vendor hardware and software Shortened print windows tough SLA s 14 IBM Output Environment

15 IBM Printing Systems 2005 IBM Corporation IBM Printing Systems POWERFUL, COST-EFFECTIVE OUTPUT SOLUTIONS 2/23/2006