Printer and Copier/MFP Market Soars in India

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The hardcopy peripheral (HCP) market in India – consisting of printers and copier/MFPs – posted its highest year-over-year growth – 23.1 percent – in the second quarter of 2018 since 2011, with quarterly shipments of approximately 0.88 million units, as per the latest IDC (International Data Corporation ) Asia Pacific Quarterly Hardcopy Peripherals Tracker, CY2018Q2. IDC believes that this growth can be partially attributed to the fact that the second quarter of 2017 was heavily affected by implementation of India’s then-upcoming Goods and Services Tax (GST).

Inkjet shipments grew by 30.6 percent year-over-year, with a contribution of 48.1 percent to the overall India HCP market. Growth in inkjet-printer shipments was led by ink-tank inkjet printers, which also recorded quarter-on-quarter growth of 4.6 percent. Laser printers, including copiers, also saw a year-over-year growth of 19.6 percent, with a contribution of 47.4 percent to the overall market.

Bani Johri , market analyst, IPDS, for IDC India, commented: “Except for second-quarter 2017, which was largely affected by the impact of GST implementation, second-quarter 2018 has been the best quarter so far for ink-tank printers, with shipments accounting for 68 percent of total Inkjet printers compared to 52 percent a year ago. Promotional activities by the top players targeted at both the end users and distributors has translated into increased ink-tank shipment.

“In (the) laser HCP (printer-based), shipment(s) for SFP (single-function) printers overtook MFP printers, primarily due to increased availability of top-selling models, which were facing supply issues till about last year. Laser HCP (copier-based) also registered strong year-on-year growth of 24.8 percent, owing to government’s crackdown on (the) reconditioned copier market, coupled with increased refresh and fresh purchase from government and enterprises,” added Johri.

Overall HCP Market

Top-Three Brand Highlights

HP Inc. (excluding its Samsung Printing Solutions group) maintained its leadership in the HCP with a market share of 40.3 percent and 5.3 percent year-over-year- growth. Its launch of new ink-tank inkjet models during the quarter and increased promotional activities (including team sponsorship at India’s flagship annual cricketing event, the Indian Premier League), coupled with improved customer service, helped drive the growth, according to IDC.

In the inkjet segment, HP remained st the second-position market-share leader, with 32.4 percent of the inkjet market. HP Inc increased its printer-based laser HCP shipments by 14.5 percent over second-quarter 2017, owing to strong SMB (small and mid-size business) demand and government deals. While there was marginal growth around the laser HCP (copier based) segment, HP jumped ahead of the likes of Kyocera Document Solutions, Konica Minolta, and Sharp in second-quarter 2018, and was second overall in the copier market with a market share of 12.8 percent. This is in line with HP’s focus on creating a strong foothold in the laser copier-based market.

Epson remained in the second position in the overall HCP market by recording 73.9 percent year-over-year growth, partly due to its relatively low shipments in second-quarter 2017. It continued its leadership in the inkjet segment by retaining its leadership with a unit share of 47.7 percent, and 80.7 percent year-over-year growth, primarily due to Epson’s low shipment volume in second-quarter 2017, which in turn is said to be a result of Epson’s decision to reduce channel inventory to prepare for the GST implementation.

Canon recorded year-over-year growth of 15.8 percent and maintained its third position in the HCP market. The laser copier segment helped Canon in registering year-over-year growth of 45.4 percent. In the copier segment, Canon maintained its leadership with 37.7 percent unit market share. Lower shipments from competing vendors, coupled with Canon’s increased focus on entry-level copier machines through aggressive promotions, helped Canon maintain its dominance in the copier market. In the Inkjet market, Canon saw strong year-over-year growth of 27.8 percent as a result of its increased promotional activities for its ink-tank inkjet models.

IDC India Market Outlook

According to Nishant Bansal, research manager, IPDS, for IDC India: “(The) market is expected to continue the quarter-on-quarter high double-digit growth momentum in third-quarter 2018, but year-on-year growth momentum may suffer as shipments in second-quarter 2017 were heavily influenced by GST implementation, resulting in unprecedented demand and record shipments. Ink-tank printers will continue gaining traction and vendors will look to aggressively push ink-tank printers through marketing, channel schemes, and end-user promotions during the festive season. Government’s continuous efforts on (a) clampdown of (the) reconditioned copier market should also translate into strong demand for original laser copiers.”

For more information on this IDC Tracker, visit IDC here.

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