IDC: Cheaper Ink Cartridges Help OEMS Gain Market Share in Asia Pacific
IDC reports today that the printer consumable market in the Asia/Pacific excluding Japan (APEJ) region declined 2.5% quarter on quarter and grew 0.1% year-on-year to reach US$1,701.24 million in Q3 2013.
IDC finds that on one hand, the printer consumable market is stable or declining in mature economies like Australia, Korea and Taiwan. On the other hand, credit crunch, low GDP growth and seasonal factors have affected consumable shipment in developing economies like India, Indonesia and Malaysia.
Out of the total consumable market, third party brands contribute nearly US$364 million, which is approximately 21% of the total value. In emerging economies like India and the PRC, compatible or after-market brands contribute approximately 33% of the total consumable market in terms of value. However, in unit terms, share of compatible players is much higher and contribute approximately 60% of the total unit shipped on an overall basis.
“During the last year OEMs, primarily Epson and HP, have launched inkjet printers with economical cartridges, offering low cost of printing. As price difference between original ink cartridge and third party solution for these printers is low, these inkjet printers have helped OEMs to increase share of originals as a part of the overall ink cartridge market. In ASEAN markets these low-priced cartridges now contribute approximately 50% to the total shipment of Epson ink cartridges,” says Pankaj Chawla, Research Manager for IPDS Research at IDC Asia/Pacific.
In such a scenario, third party vendors find the laser toner market more favorable to them. Unlike developed markets, like US and Europe, there are less legal hassles in Asia Pacific countries as most are low income countries and cost is a major concern for not only Small Medium Businesses (SMBs) but also for corporate.
In addition, the considerable price gap between OEM and Third party products catalyzes sales of third party products. Third party vendors have introduced new products like compatible toners and refillable toners with DIY kits. Even channel partners engaged in the business came up with offers like cost per print, cost per toner or other subscription-based customized solutions.
OEMs are also gearing up to increase their market. Some OEMs are launching Managed Printer Services (MPS) for SMBs to offer them low cost of printing. Ricoh has launched refillable toners while market leader HP has urged after-market players to respect OEM’s intellectual property rights and not mislead and confuse customers.
For more information about the research or to purchase this data, contact IDC’s Sheryl Fuertez at +65-6829-7758 or sfuertez @idc.com.