Indian Hardcopy Printer/MFP Market Sees Decline

The Indian Hardcopy Peripherals (HCP) market shipped 1.03 million units in third-quarter 2019 (3Q19), with a growth of 22.6-percent Quarter-over-Quarter (QoQ), according to the latest IDC Worldwide Quarterly Hardcopy Peripherals Tracker, CY3Q19. However, a decline in shipments of inkjet printers and the laser segment brought the overall HCP market down by 6.5 percent Year-over-Year (YoY).

According to IDC, after two years of consistent YoY growth, the inkjet segment declined by 3.8 percent, due to sluggish consumer demand, despite third-quarter 2019 being the quarter in which online channel partners stock up high volumes for the Indian festive season online sales. Barring second-quarter 2017, which was largely impacted by the then upcoming GST (General Sales Tax) launch, the ink-tank inkjet segment saw the lowest YoY growth of 0.3 percent. The laser segment occupied the lowest market share till date of 37.8 percent, owing to the migration of users to the Ink-tank segment and weak demand from SMBs and MSEs, due to credit issues they continue to face with banks. Overall, the laser segment witnessed a YoY decline of 13.5 percent.

According to Bani Johri, market analyst for IPDS, IDC India: “While the YoY growth seems challenging, the situation improved from a QoQ perspective. The inkjet market grew QoQ by 35.3 percent in preparation for the upcoming festive season. There was an increase in demand from the Government and the corporate sector. Interestingly, the single-function printers grew significantly YoY while its multi-function counterpart declined, a trend not observed in the last 19 quarters. This was a conscious move from vendors in order to flush out the inventory of single-function printers through partner schemes and flash online sales.”

Overall HCP Market:

Top-Three Brand Highlights:

HP Inc. (excluding Samsung) maintained its leadership in HCP with a market share of 38.0 percent, while its shipment declined by 9.9 percent YoY. Its growth was primarily led by the inkjet segment, which declined by 11.0 percent YoY as a result of sluggish demand from the consumer segment and the intense competition its ink-tank portfolio faced from other players. HP retained its second position in the Inkjet segment. On the laser printer front, HP continued to maintain its number-one position with a 60 percent market share and grew by 3.9 percent QoQ owing to attractive partner schemes.

Epson maintained its second position in the overall HCP market and declined marginally by 1.3 percent YoY. Epson’s single-function printer’s shipment grew significantly at the back of attractive channel schemes. It continued to hold its leadership position in the inkjet segment with a unit market share of 40.8 percent.

Canon recorded YoY decline of 5.0 percent while maintaining its third  position in the HCP market and capturing 23.5 percent unit market share. In the inkjet segment, Canon grew YoY by 0.8 percent as a result of channel stocking even though the market sentiments were subdued. With its wide product portfolio and a strong foothold in the corporate segment, Canon continues to lead the copier market with a 28.9 percent unit market share and by securing multiple Government orders it grew by 4.0 percent QoQ.

IDC India Market Outlook:

According to Nishant Bansal, senior research manager at IPDS, IDC India: “We should expect challenging market conditions in fourth-quarter quarter 2019 and possibly first-quarter 2020 as the negative economic sentiment will likely impact both consumer and commercial demand. High level of channel inventory and weak consumer sentiment are going to be the main factors which will have an impact on shipments in fourth-quarter 2019. However, the corporate market demand may see partial recovery owing to recent corporate tax cuts announced by the government.”

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