IDC Reports on Booming Inkjet-Printer Market in India

The hardcopy-peripherals market (HCP) consisting of printers and copier/MFPs in India posted quarterly shipments of approximately 1.1 million units in third-quarter 2018, a quarter-on-quarter growth of 25.6 percent, as per latest IDC Asia Pacific Quarterly Hardcopy Peripherals Tracker, CY2018Q3. While there was a year-over-year decline of 1.7 percent, IDC stated that the decline can be primarily attributed to the strong demand for laser printers post India’s GST (General Sales Tax) implementation last year.

Inkjet printer shipments grew by 5.5 percent year-over-year with a contribution of 55.3 percent to the overall India HCP market, the highest ever recorded. Growth in inkjet-printer shipments was led by ink-tank printers, which recorded year-over-year growth of 12.9 percent. While the overall laser-printer market declined year-over-year, due to the government’s efforts on enforcing restrictions on the refurbished copier market, the laser-copier market registered a healthy year-over-year growth of 37.5 percent.

“Shipments in third-quarter were driven primarily by the online channel segment in preparation for the sales events in the run up to the Diwali Festival. Unlike the previous years, 2018 was marked by the increased focus of e-commerce players on the printer category. Having realized the success of mobile phone, accessories and the various white goods categories in previous such online events, both HCP and ecommerce players were fairly confident of replicating it with (the) printer category as well this year.” commented Bani Johri, market analyst for IPDS, IDC India.

The Indian government’s strict regulation of the Refurbished Copier market through tight monitoring and increased seizing of illegal units at major ports gave an impetus to the original copier market. According to IDC, the refurbished market has always been an “eyesore” for original copier vendors and with its partial closure, copier vendors  are getting ample opportunities to expand their customer base by targeting the users of these machines with attractive pricing schemes.

Overall HCP Market:

Top-Three Brand Highlights:

HP Inc. (excluding HP Inc.’s Samsung Printing Solutions group) maintained its leadership in the hardcopy-peripherals market in India with a market share of 39.4 percent and a 22.7 percent quarter-on-quarter growth. It increased its promotional activities by launching schemes for retailers centered around product display and visibility. In the inkjet segment, HP retained its second position with a share of 32.5 percent. On the copier side, HP shipments grew by 25 percent quarter-over-quarter due to demand from the corporate and government segments.

Epson remained in the second position in the overall HCP market by attaining 20.7 percent quarter-over-quarter growth and it also continued to hold its leadership in the inkjet segment with a unit share of 40.2 percent and a 21.8 percent quarter-on-quarter growth. The growth is primarily attributed to Epson’s increased shipment to the online channel and LFR stores. The sales of a few top-selling models picked up amidst the upcoming product portfolio refresh.

Canon recorded year-over-year growth of 24.5 percent and maintained its third position in the HCP market with the help of its inkjet and laser-copier segments. In the copier segment, it maintained its leadership position with 28.4 percent unit market share. The government’s stricter regulations of the refurbished-copier market, coupled with Canon’s increased focus on the corporate segment, is said to have helped Canon maintain its dominance in the copier market. In the inkjet market, Canon saw a strong year-over-year growth of 55.2 percent because of the addition of new channel partners and change in channel strategy, which included attractive channel distribution and schemes, as well as strong push for online sales. Canon especially focused on its Ink-tank models through channel schemes.

IDC India Market Outlook

“Post (India’s) festive season, (the) market is expected to continue the year-on-year growth momentum in fourth-quarter 2018 owing to strong consumer and SMB demand. Ink-tank printers will continue gaining traction and compensate for (the) decline in shipments of laser printers. Government’s continuous efforts on crackdown of reconditioned copier market should also translate into strong demand for original laser copiers,”  forecast Nishant Bansal , Research Manager, IPDS & PC, IDC India.

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