Developments and trends in the analyse | advise | action ... · analyse | advice | action Development of online driven turnover in 2018 – forecast 4 Total growth Ø 4,7 % Switzerland

analyse | advice | action

analyse | advise | action

Bernd Zipper | CEO zipcon consultinganalyse | advise | action

Developments and trends in theonline print industry 2018


Forecast 2025: printing industry in transition

2

Transforming companies have a chance to survive in the competitive arena

50%

20%

20% 10%30%

Loser of the transformation Niche-supplier/special printing Transforming printer

Transformer Onlineprinter

2017: ca. 34.000 Printers @ Europe 2025: ca. 17.000 Printers @ Europe


Open shop online print 2017: forecast confirmed

3

Growth by 15,4 % to approx. 3,0 billions € * in Germany/Austria/Switzerland

› Top-5-player: 1,47 billion € turnover in 2017› … foreign sales grow

› … sales growth by acquisition

› Packaging/labeling and promotional article open news sales areas

› Consumers are increasingly purchasing high-quality prints and appreciate them

› Trend: customized products are increasingly sold via B2B/B2C

* = Turnovers in billion € of all B2C-Products incl. photo books, textiles, promotion articles and print – without closed shop (B2B) turnovers

0.8

1.1

1.4

1.7

2.12.3

2.52.6

3

2009 2010 2011 2012 2013 2014 2015 2016 2017

Calculated figures Forecast

Source: Market Research / Market Estimates by zipcon consulting gmbh © 2017

+ 15,4 %


Development of online driven turnover in 2018 – forecast

4

Total growth Ø 4,7 %

Switzerland

Germany

Austria

Market forecastGermany/Austria/Switzerland

2018 – 7.85 bn €

3,32,55

0,80,43

0,50,27

4,63,25

B2C B2B

B2C

B2C

B2C

B2B

B2B

B2B

7.85 bn €

Source: Market Research / Market Estimates zipcon consulting gmbh © 2018


Turnover:

• B2B/B2C/B2B2C/B2B2B• Online print

(Photo/Print/Promo)• B2B-Portals• Marketplace-turnover• Online B2B-offers of

classic printer• Turnover of international

online providers

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Forecast: online driven turnover DACH

5

Open/closed stores – stable turnover, slight increase


1,40 1,70 2,10 2,30 2,50 2,60 3,003,25

1,50

2,00

2,60

3,203,60

4,10

4,504,60

2011 2012 2013 2014 2015 2016 2017 2018Open Store sales

Closed Storesales

Open Store forecast

Closed Store forecast

+ 2,2 %

+ 8,3 %

Forecast 20187.85 bn €› Forecast: growth from 7.5 bn € to 7.85 bn €

› B2C: 8,3 % growth, but weaker than in 2017› B2B: 2,2 % special point of view by turnover distribution

› Special effect: international market participants

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0

100

200

300

400

500

600

700

2011 2012 2013 2014 2015 2016 2017Cewe/Saxo/Foto 480 503 527 524 554 593 599Flyeralarm 237 257 280 307 316 330 340WmD/Cimpress 9 23 48 95 200 220 240Onlineprinters 45 60 75 89 96 105 200United Print 49 52 55 60 65 70 85

Mill

ion

Euro

s/Sa

les

Turnover of the Top 5 – online print shops 2011 – 2017

6

Source: Company announcements / Market Research / Market Estimates by zipcon consulting gmbh © 2018

Total turnoverTop 5

1.46 bn

Turnover of German companies incl. proportionate foreign sales


Increase of the foreign sales (improved market

presence and multi-brand strategies

New/Old Players increasing the B2C/B2B

turnover in Germany

Print production in East Europe: use of price advantages by B2B

providers

Influencing factors – online print DACH

7

B2B/B2C

Switzerland

Germany

Austria


+ other providers

Turnover redistribution in the B2B sector between online printers and B2B

portal/market place providers


Influencing factors – online print DACH:acquisitions

8


Germany

Takeover by OP October 2017Takeover by OP

Mach 2017

Takeover by CimpressJuly 2017

Takeover by CeweFebruary 2018

Takeover byCewe

January 2018


Challenge online print 2018Challenge online print 2018

Digital TransformationDigital Transformation ServiceService

Dynamic PricingDynamic Pricing

ChatbotsChatbots

Market AccessMarket Access

MobileMobile

Voice ControlVoice Control

ProductionProduction

Predictive Planning

Predictive Planning

RoboticRobotic

ProductsProducts

Mass Customization

Mass Customization

Online print challenges 2018

9

Topics to pay attention to …


Disruption? Transformation!

10


Defining success of disruptive companies

11

Quelle: TIM Review

traditional ecosystem

platform

customer

provider

sales

affiliation

affiliation

agent

provider

sales

sales

sales

customer


In brief: The secret of successful Transformation is a working eco-system

12

Innovation Ecosystems

integrate exploration (knowledge) and exploitation

(business) ecosystems

Knowledge Ecosystemsfocus on generating new knowledge and technologies

focus on creating customer value

Local Company

or Platform Business

Ecosystems


Challenge No.1: Digital Transformation

13

Digital Transformation blockers in Germany 2017

› ... just because a company has an online shop, it is far from "transformed"!

› Main factors in medium-sized online print:

› Insufficient investment capital› Deficient infrastructures› Lack of knowledge› Incorrect assessment of their own

progress› „IT“-Thinking, instead of

„E-Commerce“-Thinking

STUCTURE

HUMAN

INTE

RN

EXTERN

Ignorance

Incorrect assessment of their own progress

“The IT shall take care of this”Overestimation of the

USA

Technophilia

Deficient infrastuctures

Lack of knowledge

Hype

Google

Type of discourse

Lack of education


Service: Dynamic Pricing

15

Every customer gets “his” price

› Dynamic price adjustment of the retail price on demand

› Price selection depending on…› Customer profile

› Ordering behaviour

› Sheet filling

› Competitive prices or dependence on the "customer route” (Mobile/PC/Tablet/Banner ads)

› First approaches in online printing currently under test› E-commerce providers are using this method already - with success› Critical: B2B customers react negatively to "agile" price variants!› Critical: Calculation systems of most printers not agile enough!

medium importance38 % 9%High

importance

Slight importance

Meaning of “Dynamic Pricing”

2016

53 %


importance

Slight importance

Meaning of “dynamic pricing” for the current business

2017

44 %


importance

Slight importance

Meaning of “dynamic pricing” for future business

2017

33 %Note: Trend statements due to low case numbers

Roun

ding

dev

iatio

ns in

the

resu

lt di

spla

y ar

e po

ssib

le in

the

prog

ram


Service: Chatbots

16

First approaches in online print

› Hype in e-commerce› User acceptance …

› Low, in case of poor implementation

› Moderate, with good implementation

› Low acceptance at products requiring explanation, e.g. online print

› Potential: Moderate

Which dialogue channels customers prefer to use with companiesFor simple requests ( e.g. opening hours) For personal problems (e.g. invoice)

For complex topics (e.g. complaints) For complex inquiries (e.g. product advice)


Service: Same-Day-Delivery

17

Same-Day-Delivery (SDD) increase

› … and pressurises the online print industry › High demands on production quality and speed

› B2B customer likes same-day delivery with acceptance of higher prices

› B2C customer only wants to use SDD if it is not associated with additional costs

› 37% of respondents in the Statista study see SDD as a game changer

› McKinsey: Market in Europe up to 2020 approx.3 Mrd. € (Forecast)


Market access: Mobile devices

18

Google: Anti-mobile online printers will be punished

› Mobile search results and download times will be relevant to Google from July 2018

› Do not underestimate the big impact

› New: „Speed-Update“ › Relevant for all providers (including B2B) - since

smartphone also takes over the function of the info hub in B2B

› 20% of tested websites are - according to Google - not mobile-enabled

› Important: Do not neglect mobile SEO› Self test via: PageSpeed Insights (Google)


Market access: voice control

19

Five questions to Alexa + Google Home

› Acceptance of voice control is increasing› Differentiation B2C/B2B hardly possible › Customer informs himself where he is at the moment

› Test - can Alexa + Google Home help the customers find online print? › Our Questions:

1. Where can I have something printed?

2. Who is the best online printer?

3. Please tell me a print shop nearby.

4. Please tell me the price of 100 business cards

5. Please tell me the price for a 4/4 color magazine on 160gr./coated matte paper.....



20

More than every second user has already used voice services

56% already used

44% not used yet

other

None, but I can imagine using one.

None, can't imagine using one either.

I don't know / not specified



21

Voice services facilitate information search, navigation and control of multimedia applications

Quick access to general information (Wikipedia,..)search engine search

navigationControlling multimedia applications (Music, Video,…)

dictation function

contact personsControl of smart home applications

Online shoppingFood ordering

Fitness and health tracking

othernone

I don't know / not specified


Production: Robotic + automation

22

More favorable initial conditions favor the use of robotics

› Collaborative Robot Technologies› Robotic inputs (Robots + Humans working together)

› Autonomous Robot Technologies› Robot works alone (cage keeping)

› Areas of responsibility› Machine loading / palletizing/depalletizing› Pick + Place (also Covermaker)

› In development …› cutting robots› Pick + Place for print (objects)› Pick + Place for laser applications


Production: Robotic + automation

23

More favorable initial conditions favor the use of robotics

› Collaborative Robot Technologies› Robotic inputs (Robots + Humans working together)

› Autonomous Robot Technologies› Robot works alone (cage keeping)

› Areas of responsibility› Machine loading / palletizing/depalletizing› Pick + Place (also Covermaker)

› In development …› cutting robots› Pick + Place for print (objects)› Pick + Place for laser applications


Logistics & ShippingProductionProduction

OptimizationApproval &

PaymentContent

Customization

The Mass Customization Platform

30

Product Selection& Configuration

Dynamic Pricing Engine

Routing EngineProduction Dashboard

Production APIsMerchant APIs

Product Catalog Selection

Online ProductConfigurator

Design Upload

Online Design

Online Personalization

File Check / Preflight

Online Proof Review

ApprovalManagement

Payment

SLA/DeliveryOptimization

Order Batching

Color Management

JIT Material

Printing

Finishing

Order Confirmation

Finished GoodsStaging

Shipping

Sheet Optimization

Printer Presetting

FinishingPresetting Source: Keypoint Intelligence I InfoTrends


Top growth areas in online print 2018

31

Mass Customization pushes growth areas

› Packaging› Labeling› Textile› Promotion› Photo products› Social Media Print Products

› (Lost-my-name/My-social-book)

› …› Individual commercial products (refined) in print run 1-10


Trend topics - implementation - time horizonWhen to expect which topics...

32

ATTE

NTI

ON

TIME

Automatic Creative Design

Dynamic Pricing

Robotik

Predictive Planning

Mass Customization

recommended action period

ChatbotsMobile Print Commerce

summit of too high expectations

platform of productivity

path of enlightenment

valley of disappointmenttechnological trigger

Pattern RecognitionVoice AssistantInteractive Packaging


QUESTIONS? [email protected]

Thank you for your attention.


Documents

Developments and trends in the analyse | advise | action ... · analyse | advice | action Development of online driven turnover in 2018 – forecast 4 Total growth Ø 4,7 % Switzerland