Recovery in India’s Printer/Copier/MFP Market; HP Remains Market Leader

India_holidays_list_2014International Data Corporation reports that despite a slowdown in the consumer segment, the India Hardcopy Peripherals (HCP) market enjoyed a recovery in first-quarter 2014.  The growth was primarily driven by the government procurement,  and supported by mid-size and large enterprises in India. Hewlett-Packard remained the market leader in India, but Ricoh made very strong gains (see below).

In its research, IDC includes printers, MFPs, and copiers as hardcopy peripherals.

According to IDC, the HCP market in India grew 1.5 percent sequentially in the first-quarter and reached 801,000 units in terms of shipments. This was largely driven by the government’s buying in the laser segment, which recorded a significant sequential growth of 12.8 percent. But on the other hand, the inkjet segment performed weakly due to low consumer demand across all price segments, resulting in a marginal growth of 1.5 percent.

Mohammed Riyaz Ahmed, market analyst at IDC India, commented, “Excluding the government business, the demand of laser printer  is slowing among the medium and large enterprises due to the combination of national and state elections where enterprises decided to hold their purchase till the new government is in. However, overall business from this segment was stable due to the financial year-end purchase, where corporate would like to use up their remaining budgets. All these factors collectively led to the growth of the laser market.”

In the overall hardcopy-market in the first quarter:

  • Hewlett-Packard managed to achieve 48.3 percent shipment share in first-quarter 2014 and remained as the market leader in India.
  • HP was followed by Canon and Epson with 16.4 percent and 10.5 percent share respectively.
  • With increased sales in the government segment, Ricoh emerged into the fourth position in first-quarter 2014; it was closely followed by Samsung with just a marginal difference in market share.

In the inkjet market:

  • Due to low consumer demand and marginally high inventory, the inkjet market witnessed a sequential decline of 15.5 percent in first-quarter 2014.
  • All of the leading vendors in the inkjet market recorded a sequential decline, but the highest decline was seen in Canon’s share this quarter.
  • HP’s focus continued to be with its Ink Advantage series, while Canon announced many new models recently. “All the leading vendors had a bit of inventory issues earlier. But later in the second half of the quarter, a lot of new campaigns and marketing activities were seen in the inkjet HCP* market. As a result, a recovery is expected in the next quarter with vendors targeting back to school season.” says Mohit Raizada, senior market analyst for IDC India.

In the laser printer-based market:

  • The market has grown by 9.3 percent in terms of unit shipments in first-quarter 2014 compared to first-quarter 2013.
  • The surge in government business was the prime reason for growth; growth was also supported by a stable channel business.
  • HP continued to be the market leader with a share of 52.1 percent, followed by Canon and Samsung in the second and third positions respectively.
  • Ricoh expanded its government business and remained in the fourth position in first-quarter 2014, with a small increase in its market share.

In the laser copier-based market:

  • There was a very high sequential growth of 68.4 percent in first-quarter 2014.
  • The first quarter in India has traditionally been very strong for the copier-based segment and the trend continued this year. This was primarily due to strong government buying, but demand from the enterprise segment was high too.
  • Ricoh’s market share has grown tremendously, from 30.0 percent in first-quarter 2014, as it was among the few vendors to win major deals in the government sector.
  • Canon also recorded a high sequential growth of 20.9 percent, but moved to the second position in first-quarter 2014, followed by Konica Minolta at the third position

IDC’s Raizada, senior market analyst, commented, “(The) printer industry in India is moving to the next level where vendors are mapping and targeting key accounts and industries with the solutions and services approach, and are modifying and building their portfolio accordingly. In addition, more focus on Managed Print Services (MPS) will also be seen the coming year. On the consumer side, vendors are also identifying and analyzing customer needs and requirements and aggressively marketing and re positioning their products to reach the right target buyers.”

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