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IDC: Lower Inkjet and Laser Printer, Copier/MFP Sales in India Due to Demonetization

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According to market-research firm International Data Corporation (IDC), the printer and copier/MFP market in India declined 18.4 percent sequentially in fourth-quarter 2016 and reached 737,475 units in terms of shipments, due to the sudden demonetization (removal) of several Indian banknotes from the Indian economy.

According to IDC, due to demonetization, consumer purchases were affected, while deals involving the Indian government and corporation were also put on hold, resulting in the printer/MFP market suffering much lower shipments. (On November 8, 2016, the government of India announced the demonetisation of all ₹500 [U.S. $7.40] and ₹1,000 [U.S. $15] banknotes in the Mahatma Gandhi Series, claiming that the move would curtail India’s “shadow economy” and reduce the use of illicit and counterfeit cash to fund illegal activity and terrorism. The sudden nature of the announcement, as well as the prolonged cash shortages in the weeks that followed, is said to have caused much disruption throughout the Indian economy.)

However, IDC says that “consumer sentiment remains good” and going forward, demand is expected to pick up in coming quarters in India with the impact of demonetization subsiding.

Overall, in India’s printer and copier/MFP market in fourth-quarter 2016:

  • HP Inc. managed to achieve 44.1 percent shipment share, leading the printer market in India.
  • Epson has overtaken Canon to be the second-biggest player with 23.4 percent market share.
  • Canon lost further ground with a 1.9 point sequential decline and a market share of 18.1 percent.
  • Samsung emerged into the fourth position at 4.6 percent, followed by Brother at 2.9 percent.

In the inkjet printer/MFP market:

  • Demand was affected by demonetization and the inkjet market witnessed a sequential decline of 24.6 percent quarter-over-quarter.
  • Epson witnessed year-over-year growth of 26.9 percent, while all other vendors suffered both year-over-year and sequential quarterly declines.

Manali De Bhaumik, IDC India senior market analyst commented: “Fourth-quarter 2016 had a major impact on the market due to demonetization. but first-quarter 2017 is likely to bring good news. The market is expected to see growth with government and corporate deals coming in, as well as demonetization impact subsiding, which would result in rising consumer demand.”

In the laser-printer market in fourth-quarter 2016:

  • The market declined by 11.6 percent quarter-on-quarter in terms of unit shipments in Q4 2016. Before a good third-quarter 2016, the market was soft in second-quarter 2016 due to low government and corporate deals.
  • HP Inc. continued to be the market leader with a share of 55.7 percent, followed by Canon and Samsung in the second and third positions, respectively. HP Inc. witnessed a decline this quarter, while Ricoh dropped to fifth position and lost share this quarter.

In the laser copier/MFP market:

  • There was a sequential dip of 16.1 percent and “was soft due to demonetization,” along with low government spending.
  • Canon managed to hold on to the number-one spot with a market share of 27.4 percent, despite a 12.6 percent sequential decline in shipments.
  • Konica Minolta was in the second position with 23.1 percent market share, followed by Ricoh and Kyocera Document Solutions.

IDC Forecast

IDC forecasts that India’s inkjet market is expected to be dominated by inkjet printers with refillable ink tanks, as vendors push their printers with aggressive marketing campaigns.

“With consumer also opting for ink tanks and their preference over entry-level lasers, inkjets are likely to continue on the growth path and dominate the market in the coming quarters. (The) laser-copier market is also expected to do well in the coming quarters, due to the digitization initiatives by the government originating the demand for copiers. Tier 3 and 4 cities have been doing well and are expected to drive the growth in the coming quarters” said Nishant Bansal, IDC India research manager for Imaging for Printing and Document Solutions.

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