Opportunities in Digital Print

Version: [3.3] Classification: In Confidence Owner: [Graham Moore]

Opportunitiesin Digital Print

Roger ChristiansenMarket Development ManagerRicoh Europe

EuropeanMarket overview Direct Mail

Agenda

Books

Summary

Promotional

2

Market overview

3

The Total Value of the PP Market

71%DigitalGrowth

Pira - The Future of European Printing to 2015 Market Forecast. Includes print machinery, ink, paper and board

Significant market opportunities in digital

Western Europe Print Market€ Millions

Digital EP& Inkjet

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

Offset

80949

68946

9453

411316280

6890

2009

2015

Digital

Inkjet

2% Total

Print Market

Growth

(to 2018)

2018 Worldwide

Top digital applications in Western Europe

Source: Infotrends - Western European Digital Production Printing Application Forecast: 2010-2015

What’s happening in the Books market?

6

7

Books - drivers

8

Volume growth drivers

• Shorter runs

• On-demand business models becoming possible

• Drive to reduce storage and obsolescence costs

• Improvements in digital printing technologies, especially in continuous-feed inkjet

Books - drivers

Volume decline drivers

• Flat to declining demand for books overall

• Reluctance of publishers to change business and production models

• Encroachment of e-books into physical book sales

79% of jobs in 2011 fell into a category of production volumes under 5,000 - which is suited to digital production. (Source: Pira)

530,000 new titles in print in 2011 – growth of 8% since 2007*

8,500,000 titles in print in 2011 – growth of 51% since 2007*

*Source: European Book Publishing statistics Nov 2012

Your opportunities in books ?

Copyright Ricoh Europe PLC 2013

Print on demand•reduce warehousing costs•make money from backlist

Local production / Distribute and print• minimise / eliminate distribution costs• sustainability• opportunity to localise

Multi-platform•opportunity to add value to printed books, •link to digital

Original drawingBy Duncan Newton

Original drawing by Duncan Newton

Print on demand in action….

Very effective if they print the right amount (rare)

Excessive waste if publisher prints too much

Lost revenue, unhappy authors, and empty book store shelves if they print too little

Lost Revenue

Waste

Nº

of

Bo

ok

s in

Inv

ento

ry

Time

Minimum OffsetRun Length

Digital reprints - shorter runs with less risk

Author Publisher Printer Distributor Book Store

The long tail – the end of out of stock

What’s happening in Direct Mail ?

11

12

Direct Mail - drivers

13

Volume growth drivers

• More targeted mailings, personalisation

• Still growing in some European markets

• Enabling white paper solution through ultra-high volume digital colour print

• More targeted mailings, personalisation

Direct Mail - drivers

Volume decline drivers

• Move to other forms of direct marketing

• Increase in postal costs

• Detrimental image of direct mail as junk mail

Digital is 30%

of P&G budget

Big data, small communications

Data

Effective communications

Value added services

Segmenting

Targeting

Profiling

Print

Digital

Social media

Mobile

Greaterpersonalisation

Copyright Ricoh Europe PLC 2013

Your opportunities in Direct Mail ?

Copyright Ricoh Europe PLC 2013

Full colour variable data solutions•improve response rates•provide more targeted conversations with their clients•combine with colour digital to create personalised communications

Cross Media marketing•consistent customer experience across multiple channels•integrated communications

Marketing Asset Management •centralises the management of marketing assets (such as brochures, collateral and flyers) enabling customisation and personalisation

Cross media marketing in action

MobileDevice

DATABASE

Recipient updatespersonal data

Print

Print

Order confirmation

Online

MOBILE DEVICE

PURL

CUSTOMER EXPERIENCE

Copyright Ricoh Europe PLC 2013

17

What’s happening in Promotional print ?

Promotional print - drivers

18

19

Volume growth drivers

• Shorter runs, regionalisation, and versioning

• Growing overall demand

• Underserved demand from micro-businesses, which can now be served by digital print

• Shorter runs, regionalisation, and versioning

Promotional print - drivers

Volume decline drivers

• Electronic billboards replacing posters

• Regulations against out of home advertising

• Message overload !

• 12,500 printed Point of Purchase in a typical supermarket

• Or 4 per second

• Creativity !

• New applications

• New markets

Your opportunities in Promotional print?

Copyright Ricoh Europe PLC 2013

Cost-effective solutions for short run (existing business)• excellent quality (extra process colours)• Piezo Inkjet technology (becoming dominant in WF digital print industry)• Strong environmental benefits

VersioningTest marketingRegionalisation

Micro brandsIn store promotionsCreative ideas !

Next actionsSummary

21

Summary• Offset is declining, and

digital is growing but by 2018 79% total market will still be Offset (Pira)

• Lots of challenges in the market

• Lots of change and disruption

= bad news for existing business models

• One man’s threat is another’s opportunity

• Creates opportunities for Print Service Providers

• New challenges: how do you make money from short runs ?

• Focus on niche opportunities

• Are you a printer or a service provider ?

22

Thank you

Questions?