Singapore and Hong Kong, December 17, 2013 – IDC reports today that the printer consumable market in the Asia/Pacific excluding Japan (APEJ) region declined 2.5% quarter on quarter and grew 0.1% year-on-year to reach US$1,701.24 million in Q3 2013.
IDC finds that on one hand, the printer consumable market is stable or declining in mature economies like Australia, Korea and Taiwan. On the other hand, credit crunch, low GDP growth and seasonal factors have affected consumable shipment in developing economies like India, Indonesia and Malaysia.
Out of the total consumable market, third party brands contribute nearly US$364 million, which is approximately 21% of the total value. In emerging economies like India and the PRC, compatible or after-market brands contribute approximately 33% of the total consumable market in terms of value. However, in unit terms, share of compatible players is much higher and contribute approximately 60% of the total unit shipped on an overall basis.
“During the last year OEMs, primarily Epson and HP, have launched inkjet printers with economical cartridges, offering low cost of printing. As price difference between original ink cartridge and third party solution for these printers is low, these inkjet printers have helped OEMs to increase share of originals as a part of the overall ink cartridge market. In ASEAN markets these low-priced cartridges now contribute approximately 50% to the total shipment of Epson ink cartridges,” says Pankaj Chawla, Research Manager for IPDS Research at IDC Asia/Pacific.
In such a scenario, third party vendors find the laser toner market more favorable to them. Unlike developed markets, like US and Europe, there are less legal hassles in Asia Pacific countries as most are low income countries and cost is a major concern for not only Small Medium Businesses (SMBs) but also for corporate.
In addition, the considerable price gap between OEM and Third party products catalyzes sales of third party products. Third party vendors have introduced new products like compatible toners and refillable toners with DIY kits. Even channel partners engaged in the business came up with offers like cost per print, cost per toner or other subscription-based customized solutions.
OEMs are also gearing up to increase their market. Some OEMs are launching Managed Printer Services (MPS) for SMBs to offer them low cost of printing. Ricoh has launched refillable toners while market leader HP has urged after-market players to respect OEM’s intellectual property rights and not mislead and confuse customers.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 46 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.