Tag: market

By Smithers Pira for The Gapp News

The latest research from Smithers Pira investigates what the future holds for digital and analogue print equipment market over the next five years. In 2018, the global market for new print equipment sales had a value of $19.77 billion. This market grew (at constant prices) from $19.91 billion in 2013 to $20.10 billion in 2017 before falling back to its 2018 level; equivalent to a -0.3 per cent year-on-year decline for the 2013-2018 period. The annual print equipment market is forecast to show minimal growth in value at 0.1 per cent, a compound annual growth rate (CAGR) for 2018 to 2023, to reach $19.92 billion in its final year.

At the same time, the market will see a transformation, with real demand growth confined to inkjet sales and certain formats of sheetfed offset litho. This is happening in response to profound and ongoing change in demand for print, and equipment manufacturers are compelled innovate to secure sales in an increasingly competitive market. These trends and their impact on future demand for over 25 types of commercial printer are tracked and quantified in the recent Smithers report.

Market evolution
The printing industry is undergoing a series of major changes. Sales of newspapers and magazines, a traditional and important segment for print equipment, have fallen dramatically in many parts of the world in face of 24-hour digital access to news and information via computers, tablets and smartphones.

Rising demand for packaged goods means that packaging and label printing are two of the few growth sectors in print demand. Original equipment manufacturers (OEMs) are looking to capitalise this with new dedicated press formats – especially in inkjet – and extending capabilities on existing platforms to handle packaging substrates. Within packaging, and other end-use applications, print buyers are demanding shorter average print runs, and ever quicker delivery times.

OEMs of both analogue and digital print equipment are reacting to the changing market dynamics with improvements to their presses. For analogue processes, this has largely been to make them more agile and efficient to deal with a larger number of print jobs of shorter runs per day. For digital, developments have been focused on improving print quality to match analogue processes, and on increasing print line speeds.

Analogue
Faced with reductions in average print runs of up to 50 per cent in some cases, analogue printers are demanding intensive technological developments. High levels of automation at all stages of the print process have allowed print service providers (PSPs) to make major reductions in makeready times and give them greater control and monitoring of the print run to improve quality standards. Cumulatively these improvements have enhanced the flexibility of the print equipment to make PSPs to run a larger number of shorter print runs during a working shift cost-effectively.

The widespread use of computer-to-plate (CTP) processes has been a key factor in reducing prepress times. The process has been used for offset litho for more than 15 years, and it is rapidly gaining ground in flexo prepress. CTP also provides improved reproduction quality so that PSPs can offer better service to customers. The incorporation of digital workflow systems and the use of on-line spectrophotometers and pattern recognitions systems to constantly monitor quality during the print run have improved the efficiency of print lines and reduced running costs, as well as reducing reject rates and generation of waste.

Offset litho
The analogue process that has seen the biggest number of improvements in recent years is sheetfed offset litho. Innovations by the leading Western and Japanese manufacturers have transformed the technology, to a great extent.

Besides the improvements detailed above, print line run speeds have been increased and processes been optimised for short print runs. Computer-integrated manufacture systems are being used to preset the presses with files from prepress, and with simultaneous plate changing and washing cycles make-ready times can be reduced to under 10 minutes – less than three minutes for the same substrate and format. Sheedfed offset litho printers are increasingly carrying out simultaneous printing of groups of jobs by setting them up side-by-side across a large-format press.

Offset litho is also seeing a boost from orders received via the online web-to-print sector. The segment is also benefitting from a new demand for higher productivity very-large format (VLF) litho presses. As new installations of B1-B3 presses decline, Smithers’s analysis tracks how annual sales of VLF machines will more than double across 2017-2023.

Flexo
In flexography, an important additional development has been in the use of sleeves to simplify the process of mounting the printing plates onto the flexo press, reducing make-ready times. This has eliminated the need for printers to prepare and store the multiple, non-interchangeable cylinders required for several jobs, reducing the costs for cylinders and for their storage.

The segment is also innovating through cooperation with inkjet press and printhead developers. This is seeing a new generation of hybrid presses that combine flexo’s efficiency for big solid area colours with the variable data potential of inkjet, integrated with existing flexo finishing lines.

Gravure
Manufacturers of gravure presses have introduced automated trolley changeover processes for cylinders and inking systems on the latest generation of equipment, making them more flexible and enabling quicker turnaround times between jobs.

Digital
Technology developments of the two digital print techniques, electrophotography (toner) and inkjet, have been taking place for many years. Naturally suited to short-run commissions, these are enabling these processes to be used for a wider range of commercial and industrial printing applications. The main focus in digital printing in 2019 is on:

• Improving print quality to more closely match the best of the analogue processes
• Increasing print speeds to extend use to longer print runs.

Electrophotography
Electrophotography will continue to see improvements in colour printing quality to match, or exceed, that achievable by offset printing. The potential for increasing the speed of toner machines is limited however by the multi-stage print technique. This will see sales of new electrophotography equipment fall across the Smithers forecast period as genuine growth concentrates on inkjet. In response many toner OEMs are looking to diversify into this alternative digital process.

Inkjet
Across the print industry R&D spending is highest in inkjet. This investment is being witnesses in improvements in quality and reliability of the equipment, reducing printers’ total costs. New inkjet presses can print at faster speeds to give better productivity, and new workflow solutions and more automation of material handling is improving productivity of lower speed presses.

New sales of inkjet press are being driven by the introduction of high-performance inkjet machines, in packaging with machines directly targeted at corrugated, folding cartons, flexible and rigid plastics, and even metal print. As well as labels, there is a developing application in cost-effective production of short to medium runs of mono and full-colour books, often via e-commerce ordering.

A major trend is for digital print lines to integrate with postpress finishing systems, to take full advantage of the automated operation of the print process. This is more prevalent with inkjet lines as integrated finishing limits flexibility of a toner line. As the number of digital print lines grows at the expense of analogue printing, the use of in-line finishing for those end-use applications with good workflow streams will reduce the number of near/off-line postpress operations in print shops.

Amazon loses $250-billion in 8 weeks

By Jake Kanter for Business Insider US

Amazon has lost $250 billion (R3.7 trillion) in market value since it became a trillion dollar company in September.
It took Amazon 18 years to reach a valuation of $250 billion after first going public in 1997, Fortune pointed out.
Amazon’s quarterly results missed analysts’ expectations and ignited worries that the tech company is facing stronger competition.

If the giant scale of America’s first trillion-dollar companies Apple and Amazon can make movements in their stock price seem a little abstract, then Fortune provided some timely context on Monday.

The publication pointed out just how marked Amazon’s share price decline has been in recent weeks, with a little bit of history about the online retailer, which first went public in 1997.

After hitting the heady heights of a $1.02 trillion valuation on September 4, when it closed at $2,039.51 a share, Amazon has since taken a heavy hit. The company’s share price was down to $1,538.88 on Monday, tearing around $250 billion (R3.7 trillion) off its value in an eight-week period.

Amazon first hit a market cap of $253-billion on July 24, 2015 – 18 years after it first went public.

Macrotrends
Amazon’s quarterly results on Thursday missed analysts’ expectations and ignited worries that the tech company is facing stronger competition. Amazon’s stock has fallen 14% since then – its worst two-day decline since 2014, Reuters said. It relinquished its spot as the second-largest US company by stock market valuation to Microsoft.

Some $200-billion has been wiped off the value of FAANG companies – Facebook, Apple, Amazon, Netflix, and Google – since Thursday, as a stream of Q3 earnings trickle in.

Massmart still failing to deliver for Walmart

Source: Supermarket & Retailer

More than seven years after the $2.5bn acquisition of Massmart by Walmart, the merger between the world’s largest company by revenue and Africa’s second-largest distributor of consumer goods is yet to set the SA retail sector alight.

Walmart may have been overoptimistic about the deal and have underestimated the difficulties that SA retailers face

Walmart’s high-profile purchase of a 51% interest in Massmart — whose products straddle the general merchandise, liquor, home improvement and wholesale food markets — heralded the US group’s foray into Africa. It was part of a broader strategy to get into high-growth markets. With such growth aspirations in mind, Massmart, a high-volume, low-margin business, was a logical target for Walmart.

“We see an opportunity to take our mission and apply it in this part of the world and create growth opportunities,” Walmart CEO Doug McMillon said in January 2011. Indeed, since the deal was consummated in June 2011, Massmart, the owner of Game, DionWired, Makro and Cambridge brands, has increased the number of its stores from 288 to 424, as of January 2018.

It has a presence in several sub-Saharan African countries through its four operating divisions, Massdiscounters, Masswarehouse, Massbuild and Masscash. But, overall, the transaction that promised so much has delivered very little.

It is difficult to overlook that Walmart bought the majority shareholding in Massmart at R148 a share. As of Friday, Massmart’s share price has slipped 14.35% since the implementation of the transaction on June 20 2011. The shares were up 2.63% on Friday at R113.66.

“It has been disappointing,” says Ian Cruickshanks, Institute of Race Relations chief economist, of Massmart’s performance over the seven years.

Walmart may have been overoptimistic about the deal and have underestimated the difficulties that SA retailers face, Cruickshanks says.

“We are still very much an emerging economy. They must be prepared for the long run. But they have done a lot recently to reduce costs,” he says.

In the year ended December 2017, Massmart’s costs fell 1.3% and expenses as a percentage of sales were 16.4%. In light of the constrained consumer environment, which is stifling sales, Massmart has no choice but to prioritise cost savings.

Analyst Chris Gilmour has been scathing about what he says is Massmart’s lousy performance since the 2011 milestone deal. In that period, Massmart’s share price has lagged the general retailer’s index, which has grown by 77.98%, as of Friday.

Massmart is taking strain from deflation in durable goods, Gilmour says. “Circumstances have not gone their way.” he says.

Massmart says the deflation in domestic appliances and electronics has not stimulated customer spending because hard-pressed lower and middle income consumers prioritise spending on food.

In the SA market, which accounts for 91.6% of Massmart’s total sales, food and liquor make up 56% of sales, with durables responsible for the rest. Growth into the food market is a sore point for Massmart because the group feels hard done by what it calls anticompetitive lease exclusivity leases that rivals in the grocery retail market — Pick n Pay, Spar and Shoprite — have at malls where Massmart wants to roll out its Game FoodCo stores.

Massmart took its concerns to the Competition Commission in 2014. The Competition Tribunal earlier in 2017 dismissed Massmart’s complaint, frustrating the retailer’s plans to sell fresh fruit and vegetables, meat, dairy and bakery products at more shopping malls.

Cruickshanks says all is not lost for Massmart and has commended its pursuit of new revenue streams through value-added services and online businesses. In the six months ended July 1 online sales soared 69%.

By Daniela Forte for MultiChannel Merchant 

Back-to-school spending in the United States is projected to reach $27.6-billion this year or $510 per household, up slightly from $501 in 2017, according to data from Deloitte’s annual back-to-school survey.

The use of desktops and laptops is expected to lose share, with 49% of respondents this year saying they planned to do so, down from 53% in 2017, while mobile is projected to increase from 49% to 53%. In-store shopping is expected to be the preferred channel during back to school, representing $15.7 in total sales. The average spend for in-store purchases is projected at $292.

Clothing and accessories are expected to dominate at $15.1 billion in sales, followed by school supplies ($6 billion), computers and hardware ($3.7 billion) and electronic gadgets ($2.8 billion).

While demand and average spend is high for clothing and accessories at $286, the highest average planned spend for computers and hardware is slightly higher, at $299.

The survey revealed that children will likely influence over $21 billion in back-to-school spending, with 80% having a moderate-to-high influence in clothing and accessory purchases.

Online back-to-school shopping will be $6.3 billion, according to Deloitte, at an average spend of $115. Those undecided about which channel to shop in are expected to spend $5.5 billion, with an average spend of $104.

“The amount people plan to spend and tendency to shop in physical stores for back-to-school are consistent with last year, but retailers need to act fast for that $5.5 billion wild card,” says Rod Sides, VC for Deloitte LLP, and U.S. Retail, Wholesale and Distribution Leader, in a press release. “In just one year, previously undecided dollars have shifted dramatically by product category.”

Sides said, for example in 2017, 30% of people said they hadn’t decided if they would purchase computers online or in-store and that number shrunk 20% this year, most of it going online. In electronics, undecided spending dropped 10 percentage points, moving primarily into the stores.

Mass merchants are once again the most popular type of back-to-school retailer, cited by 83% of survey respondents, while price-based retailers (38%) and pure-play e-commerce sellers (36%) aren’t nearly as popular.

Shopping activity is expected to peak by early August, with about 90% of shoppers active from late July to early August, accounting for 66% of all sales. By period, shoppers are expected to spend $9.9 billion in the first two weeks of August and $8.1 billion in late July.

Parents who begin their shopping in July are likely to spend 20% more than late starters, Deloitte found. Early shoppers are more deal-seeking (40% vs. 27%) and mobile-savvy (55% vs. 50%) compared to late shoppers. They’re also bigger spenders, at an average outlay of $544, compared to $455 for later shoppers.

This year customers expect online and physical shopping experiences to be complementary. Fifty-six percent said they plan to research online before making in-store purchases, while 52% said they would purchase from online retailers who offer free shipping.

Less than 25% of respondents said they were likely to use social media during back-to-school season. Of those so inclined, finding promotions (cited by 63%) or coupons (59%) and browsing products (44%) were listed as their primary objectives.

The Asian region is forecast to the world’s largest market for stationery products in 2017, according to latest data compiled by leading research firm Statista.

Global revenue for the ‘Hobby and Stationery’ segment in 2017 will reach US$132 billion with an annual growth rate of 11.3 per cent between 2017 and 2021.

Asia is forecast to emerge as the highest revenue generator in 2017, which accounts for around 42 per cent of global revenue of US$56 billion.

Hong Kong, as the major trade hub in Asia Pacific, has attracted the attention of brands and manufacturers from around the world through the greater prominence of the Hong Kong International Stationery Fair.

Jointly organised by the Hong Kong Trade Development Council (HKTDC) and Messe Frankfurt (HK) Ltd, the 18th edition of the Hong Kong International Stationery Fair will run from 8 – 11 January 2018 at the Hong Kong Convention and Exhibition Centre.

The four day fair expects more than 250 exhibitors from 11 countries and regions, and more than 20,000 visitors from around the globe.

The 2018 fair will once again feature five product zones, including DIY Supplies, Gift Stationery, Kids & School, Pen & Paper and Smart Office.

To offer a one-stop trading platform and better sourcing experience, the Hong Kong International Stationery Fair will be held concurrently with the HKTDC’s Hong Kong Toys & Games Fair, the Hong Kong Baby Products Fair and the Hong Kong International Licensing Show at the Hong Kong Convention and Exhibition Centre.

Source www.stationerynews.com.au

The event, including the Remanexpo product group, will take place in Dubai from 14 to 16 March 2017, with global stationery and office suppliers targeting the “emerging” market.

In a press release, show organisers Messe Frankfurt Middle East reported that the “emerging Middle East and African” markets are making “leading international brands turn to” the event to “boost regional exports”. The event will take place from 14 to 16 March at the Dubai International Convention and Exhibition Centre in the UAE, and the company added that international suppliers “are turning to the Middle East and Africa (MEA) for future business growth”.

The UAE is also “presenting itself as the ideal gateway to access hard-to-reach markets”, with growth globally in stationery and office supplies “expected to come from emerging markets” including the MEA. The organisers cited data from analysts Technavio, who predict that there will be an “annual market increase” in the MEA of 15 percent, as well as fellow analysts Conlumino, who estimate the MEA market for “paper, stationery and office supplies” will be worth $12 billion (€11.3 billion) by 2019.

Over 300 exhibitors from over 36 countries will be taking part in the show, with Messe Frankfurt Middle East noting that “while some suppliers are now just testing the waters, other have been in the market for many years”. The seventh edition of the show will make it the “region’s largest B2B trade show covering the entire range of stationery and office supplies”, with a “strong European presence” seeing exhibitors from the UK, Portugal, France, Germany, Spain and Italy.

Other “key exporting exhibitor countries” with exhibitors present include China, Thailand, Indonesia, South Korea, Japan and Turkey, while Messe Frankfurt Middle East pointed out that last year’s show saw a “record turnout of exhibitors and visitors” which “firmly cement[ed]” the show’s position as the “must-attend trade show” for the region’s paper, office supplies and stationery markets. In total, last year saw 6,774 visitors from 101 countries, an 11 percent increase on 2015, with 304 exhibitors.

Ahmed Pauwels, CEO of Messe Frankfurt Middle East, commented: “Shifting tides in international trade and economic uncertainty over the last 12 months has meant global manufacturers have had to refocus their export outlook, and the MEA is grabbing their attention. Paperworld Middle East provides unmatched access to market representatives from the fast-growing Middle East, Africa, Central and South Asia regions, and has seen increasing numbers of leading international brands and players participating from across the world.”

Source: www.therecycler.com

Sequana reports that Antalis, the world’s largest paper distributor (outside the USA), strengthened its market share in Europe while continuing to deploy its strategy.

Antalis’ Packaging and Visual Communication distribution activities now account for 36% of its gross margin.

Antalis’ enhanced product mix

Sequana said that it benefited from an enhanced product mix mainly due to:

  • Acquisitions by Antalis;
  • Arjowiggins’ refocus on its specialty businesses;
  • The favourable impact of consolidation in the European paper distribution market;
  • Lower fixed costs resulting from the closure of Arjowiggins’ mills; and
  • The streamlining of Antalis’ supply chain.

Source: www.office-times.com

Technavio has released its latest report on the global office stationery and supply market, providing an analysis of the key trends expected to impact the market through 2015-2019.

The global office stationery and supply market is likely to exceed $2-billion by 2019 as the developed markets for office stationery and supply products are growing at a very high rate. These markets include the US, the UK, Germany, Canada, France, and Japan. Major growth is also expected from developing markets like China, Brazil, South Korea, and India.

Technavio announces four important emerging trends impacting the global office stationery and supply market through 2019.

Multichannel marketing: manufacturers and retailers are now using various channels to market their products through the online or offline medium. In this era of online shopping, the office stationery and supply market is also putting their product offerings on the online platform with the help of e-tailers. Some manufacturers and retailers are now also coming up with their own online portals. For instance, Staples has become the second largest online retailer for office supplies with its online portal Staples.com.

Growing demand for computer/printer supplies: one of the major emerging trends in the global office stationery and supply market is the growing demand for computer/printer supplies. IT integration and industry automation has driven the market for this segment. The toner cartridges category has become the largest contributor in this market as their demand is rising, growing at a CAGR of more than 9% through 2019.

Business expansion through mergers and acquisitions along with packaging innovation and green products are the other key trends highlighted in the report.

Source: www.office-times.com

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