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The big boys of the printer market are set to cross swords in the unfancied entry-level segments for office printers targeting small and medium businesses (SMB) and the Small Office Home Office (SOHO) users. Firing the first salvo, market leader Hewlett-Packard India recently unveiled a slew of new feature-rich inkjet printers in the price range of Rs 8,000-Rs 51,000. Interestingly the move comes at a time when the market for inkjet printers (in terms of units shipped) dropped by 4.5 per cent in 2012 as against the previous year.
To drive home the value proposition of its new range of printers for the target segment, the printing major plans to roll out a multi-channel advertising and marketing campaign across print, digital, out-of-home and at point of sale outlets. "It is like creating a new category. It will be one of our most visible campaigns," says Ranjivjit Singh, head marketing, Printing & Personal Systems India, HP India.
Watching HP's every move closely in another key player in the printer market, Canon India. "We too plan to launch inkjet printers targeting the SOHO segment," says Alok Bharadwaj, Executive Vice President, Canon India. A twin-attack from the two leading market players will only stimulate demand and help expand the market for inkjet printers in offices, say industry executives and analysts.
How to attack a dormant segment
The market for printers in India was valued at around Rs 43,000 crore in 2012, as per IDC estimates, with laser printers dominating the show. The inkjet printers in value terms accounted for around Rs 5,700 crore. Of the 1.1 million inkjet printers shipped in 2012, 80-85 per cent was picked up by home users, essentially students and professionals, a growth segment for the industry. However the business inkjet market remained depressed, dragging down the entire inkjet segment. "Cost of printing is the biggest driver in the business segment," points out Bharadwaj.
Another feedback from customers was that around 90 per cent of users used their printers for black & white printing. "Customers in this segment largely compromised on features and functionalities to fit them into their budget," says Nitin Hiranandani, director - printing systems, Printing and Personal Systems, HP India.
The HP way
HP unveiled a set of six printers under the HP Officjet Prox series and the HP Officejet Pro 3610/3620 B&W series based on a new technology that offered laser-like quality, with running costs comparable to laser toner refills. The HP OfficejetPro X series is positioned as a value product targeting mid-sized enterprises (with up to 15 users) offering printing solutions at twice the speed and half the cost of color laser printers. The printers are aggressively priced in the range of Rs 31,999-Rs 50,499.
The two models in HP Officejet Pro B&W series - priced at Rs 7,999 and Rs 11,999, respectively - were specifically designed and developed keeping in mind the printing needs of small businesses and the SOHO market in India and China. Interestingly, the models offer print, scan and copy features.
A laser printer with similar features comes at price points that are double the latest offerings, note analysts. "The move will help expand the market," says Hiranandani.
According to Mohit Raizada, Senior Market Analyst - Imaging, Printing & Document Solutions, IDC Centre for Consultancy and Research, the B&W inkjet printers would create a new segment in the market. He however adds that volumes are likely to pick up only over two-three quarters.
Spreading the message
To drive home the affordability plank, HP plans to offer special training to sales professionals at the retailer level to highlight the advantages of its inkjet products over laser at point of sales. In the first phase - over the next three to six months - HP plans to cover 1,500 stores in the top 10 cities. In the next phase, it plans to reach out to smaller cities. The company claims its range of products is available across 8,000-10,000 outlets, through a mix of company-owned and multi-brand stores.
The brand message set to get rolling over the next two months would talk about the compelling value proposition for business users. "We have around 60 per cent market share of the inkjet market. We will build on HP's equity in the market," says Singh.
Some marketing professionals feel the key to reviving a dormant market segment is to break the perception barrier when it comes to quality and cost of printing. This is something that may take time and effort. Singh is willing to brave it out: "The upside is huge", he says. Even Canon's Bharadwaj agrees that the new-found aggression by key players will only help to expand the size of pie for everyone.
