© 2009 infotrends, inc. u.s., w. european and world wide market and trends for laser and inkjet...
TRANSCRIPT
© 2009 InfoTrends, Inc. www.infotrends.com
U.S., W. European and World Wide Market and Trends for Laser and Inkjet Supplies
John ShaneDirector, Communication Supplies Consulting ServiceSeptember 2010
2 © 2009 InfoTrends, Inc. www.infotrends.com
Boston
UK
TokyoBeijing
Industry analyst firm focused on the consumer imaging, office document technology and
production printing & publishing industries.
Focused Credible Responsive Visionary
3 © 2009 InfoTrends, Inc. www.infotrends.com
Relationship-Based Consulting Services
• On Demand Printing
• Wide Format Printing
• Jetting Technologies
• Digital PeripheralsSolutions
• Image Scanning
• China Printers
• Digital Photography
• Image Scanning
• Photo Printing
• Dynamic ContentSoftware
• On Demand Printing
• Production WorkflowSolutions
• Dynamic ContentSoftware
• Network DocumentSolutions
• Internet Imaging
• Image Scanning
• CommunicationSupplies
• Production Workflow Solutions
• Document Outsourcing
• Business Development Strategies
• CommunicationSupplies
• Network DocumentSolutions
• Managed Print Services
• CommunicationSupplies
• Photo Printing
• Internet Imaging
• Digital Photography
Hardware Services Software Supplies
Consumer
Office
Production
4 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. Print Volume (B)
• “Print” volume withstood previous recessions
Explosion of devices, analog to digital
Hint of some impact from recessions
• Print volume declines in ‘08 and ‘09
Market is mature
Recession is be deeper
• Office market is most vulnerable
Fewer people and less activity
Focus on costs, electronic workflow
• Production is more resistant
Analog to digital
Higher value pages (color)
• Home may be the most resistant –but for photos?
5 © 2009 InfoTrends, Inc. www.infotrends.com
Recession’s current impact on the supplies market
• Overall print volumes are down in ‘09, 9% from the peak in 2007
Reduced headcount and activity
Emerging MPS impact
• Great incentive to save money on office supplies
3rd Party Product gains share but not enough to offset overall decline
- 35% share for B/W printer, 23% share for B/W MFPS, 6% share for Color devices
Duplex rates
Restricted color use
• Growing interest in Managed Print Services
Print volume reductions come with MPS
6 © 2009 InfoTrends, Inc. www.infotrends.com
Recession’s longer term impact on the supplies market• Slower growth than previously forecasted
Slow return of white collar employment
Residual reluctance to increase costs
Slower decline for B/W printing
Slower shift to color, on-going controls
Some aftermarket share gains to stay?
• MPS gains share and impacts supplies
Print volume reductions within an organization
- Shift to less-paper processes
Increased use of 3rd party
Duplex printing
Shift to higher volume machines with lower CPP?
InfoTrends believe that the recession will have a long term impact on print
© 2009 InfoTrends, Inc. www.infotrends.com
Supplies Market Forecast 2008-2013
8 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. & Western Europe Installed Base Forecast Units (000)
US Western Europe
0
50000
100000
150000
200000
TT Fax/MFP
Inkjet Fax/MFP
Laser Fax/MFP
Inkjet Printer/MFP
Monochrome Laser/MFP
Color Laser/MFP
B&W Copier/MFP
Color Copier/MFP
9 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. & Western Europe Total Print Volume Forecast (B)
US Western Europe
0
200
400
600
800
1000
1200
1400
1600
1800
TT Fax/MFP
Inkjet Fax/MFP
Laser Fax/MFP
Inkjet Printer/MFP
B&W Laser/MFP
Color Laser/MFP
B&W Copier/MFP
Color Copier/MFP
10 © 2009 InfoTrends, Inc. www.infotrends.com
World Total Print Volume (B)Electrophotography and Desktop Inkjet
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2008 2009 2010 2011 2012 2013
ROW
WE
US
11 © 2009 InfoTrends, Inc. www.infotrends.com
World Total Print Volume (B)Electrophotography and Desktop Inkjet
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2008 2009 2010 2011 2012 2013
Production Color
Production B/W
Inkjet Total
Color Multifunction Page
Color Single-Function PageB&W Multifunction Laser
B&W Single-Function Laser
12 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. & Western Europe Electrophographic Marking Supplies $M at Final POSElectrophotographic Copier and Printer and MFP
Total Value=Toner, Developer, photoreceptor and Residual Cartridge
US Western Europe
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Spot Color
Color Printer/MFP
B/W Printer/MFP
Color Copier/MFP
B/W Copier/MFP
13 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. & Western Europe Electrophotographic Marking Supplies $M at Final POS Electrophotographic Copier and Printer and MFP
US Western Europe
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Production Device
Office Device
14 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. Serial Inkjet Cartridge Units (M)Serial Inkjet Printers/MFPs
0
100
200
300
400
500
600
2008
2009
2010
2011
2012
2013
2008
2009
2010
2011
2012
2013
Inkjet fax
Snapshot
Photo Enabled
Photo Centric
General Purpose
US Western Europe
15 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. Serial Inkjet Cartridge $M at Final POSSerial Inkjet Printers/MFPs
0
2000
4000
6000
8000
10000
12000
14000
2008
2009
2010
2011
2012
2013
2008
2009
2010
2011
2012
2013
Inkjet fax
Snapshot
Photo Enabled
Photo Centric
General Purpose
US Western Europe
16 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. Facsimile Marking Supplies $M at Final POS
0
50
100
150
200
250
300
350
400
450
500
Thermal TT SF
Thermal TT MF
Laser SF
Laser MF
Inkjet SF
Inkjet MF
US Western Europe
17 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. Total Marking Supplies $M at Final POS
0
5000
10000
15000
20000
25000
30000
35000
40000
Fax/Fax MFP
Desktop Inkjet
Spot Color
Color Printer/MFP
B/W Printer/MFP
Color Copier/MFP
B/W Copier/MFP
US Western Europe
18 © 2009 InfoTrends, Inc. www.infotrends.com
World Total Marking Supplies Value at Final POS $MElectrophotography and Desktop Inkjet
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
2008 2009 2010 2011 2012 2013
Production Color
Production B/W
Inkjet Total
Color Multifunction Page
Color Single-Function PageB&W Multifunction Laser
B&W Single-Function Laser
19 © 2009 InfoTrends, Inc. www.infotrends.com
World Total Marking Supplies $M at Final POSElectrophotography and Desktop Inkjet
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
2008 2009 2010 2011 2012 2013
ROW
WE
US
20 © 2009 InfoTrends, Inc. www.infotrends.com
WW Marking Supplies Value at Final Point of Sale $M
2008 2009 2010 2011 2012 2013$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
ROW
Argentina
Mexico
Poland
Russia
Brazil
China
India
WE
US
© 2009 InfoTrends, Inc. www.infotrends.com
OEM vs. Aftermarket
22 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. Aftermarket Share of Total Marking Supplies $MElectrophotography
US WE
0%
5%
10%
15%
20%
25%
2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013
BW Copier
Color Copier
BW Printer
Color Printer
23 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. Total Aftermarket Supplies Revenue at Final POS $MElectrophotography
US WE
$-
$500
$1,000
$1,500
$2,000
$2,500
2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013
Color Printer
BW Printer
Color Copier
BW Copier
24 © 2009 InfoTrends, Inc. www.infotrends.com
U.S B/W Laser Cartridge Channels 2009 Share of Units
OEM
Internet
B2B
Retail
OEM Direct
Aftermarket
25 © 2009 InfoTrends, Inc. www.infotrends.com
U.S Color Laser Cartridge Channels 2009 Share of Units
OEM
Internet
B2B
Retail
OEM Direct
Aftermarket
26 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. Color Aftermarket Issues
• Aftermarket penetration about 7%
Higher for separates and for non-Chemically produced toner
Lower for AIOs
Developer
• AIOs very difficult . Barriers are:
Toner
Matching toner to drum
Process problems/reliability
Reseller concerns?
• Users are ready to try aftermarket color
• Resellers may not be ready to offer them
27 © 2009 InfoTrends, Inc. www.infotrends.com
Leading laser cartridge manufactures supplying to the US market
Remanufactured Cartridges New Build
Clover (US, Mexico, Canada, Vietnam) Ninestar / G&G (China)
(Clover) West Point Products (US) Print-rite (China)
Nukote (Mexico) Uninet (China)
MSE (US) Media Sciences (production in China)
PTI (US) GPI (Taiwan)
Print-Rite (China) GCC (Hong Kong)
Turbon (US/Europe/Asia) Hana (Korea)
AFEX (China) MMC (China)
Mipo (Hong Kong) Others
28 © 2009 InfoTrends, Inc. www.infotrends.com
35.3%
61.7% 58.3%
18.3%
23.1%21.9%
20.6%
10.6% 13.9%
32.3%
36.3%
12.3%
13.5%6.9%
14.4%
0%
20%
40%
60%
80%
100%
Brazil Russia India China
Pe
rce
nta
ge
of
Re
sp
on
de
nts
Don’t know
Only remanufactured or refilledtoner or compatible supplies
We don’t use toner cartridges
Mostly remanufactured orrefilled cartridges or compatiblebut some OEM cartridges
Mostly OEM but someremanufactured or refilledcartridges or compatiblesupplies
Only new OEM branded inkcartridges
Q47: Toner Cartridges Typically Purchased for Laser PRINT Devices
Which type of toner cartridges does your company typically buy for your laser printers or multi-function devices?
N = 306 303 302 303
29 © 2009 InfoTrends, Inc. www.infotrends.com
66.1%58.2%
47.0%
15.8%36.4%
27.0%
18.1%
5.5%
38.7%
22.7%
26.1%
38.7%
0%
20%
40%
60%
80%
100%
Brazil Russia India China
Pe
rce
nta
ge
of
Re
sp
on
de
nts
We usually buyready to usecartridges
Both about thesame
We usually take theempty cartridge tothe store for themto refill thecartridge for us
Q53: Whether Toner Cartridges are Refilled
For the non-OEM, refilled, remanufactured, compatible toner cartridges that you use.
N = 177 110 115 163
30 © 2009 InfoTrends, Inc. www.infotrends.com
U.S Inkjet Cartridge Unit Demand (M)
0
100
200
300
400
500
600
2008 2009 2010 2011 2012 2013
Tanks
Integrated
31 © 2009 InfoTrends, Inc. www.infotrends.com
Western Europe Inkjet Cartridge Unit Demand (M)
0
50
100
150
200
250
300
350
400
2008 2009 2010 2011 2012 2013
Tanks
Integrated
32 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. Aftermarket Share of Inkjet Cartridge Units
0%
5%
10%
15%
20%
25%
30%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Canon
HP
Epson
Lexmark
Dell
Brother
33 © 2009 InfoTrends, Inc. www.infotrends.com
Western Europe Aftermarket Share of Inkjet Cartridge Units
0%
5%
10%
15%
20%
25%
30%
2005 2006 2007 2008 2009
Canon
HP
Epson
Lexmark
Brother
34 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. Aftermarket Share of Inkjet Cartridge Units
0%
5%
10%
15%
20%
25%
Integrated
Tanks
Overall
35 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. Inkjet Aftermarket Product Types
Integrated Cartridges
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012 2013
Remanufacture
While-you-wait Refill
Syringe/User refill kits
36 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. Inkjet Aftermarket Product Types
Ink tanks
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012 2013
New Build
Reman
While-you-wait Refill
Syringe/User refill kits
37 © 2009 InfoTrends, Inc. www.infotrends.com
Western Europe Aftermarket Share of inkjet Cartridge Units
0%
5%
10%
15%
20%
25%
2005 2006 2007 2008 2009 2010 2011 2012 2013
Integrated
Tanks
Overall
38 © 2009 InfoTrends, Inc. www.infotrends.com
U.S Inkjet Cartridge Channels 2009 Share of Units
OEM
Internet
B2B
Retail
OEM Direct
Aftermarket
39 © 2009 InfoTrends, Inc. www.infotrends.com
35.3%44.6%
53.0%
13.1%
32.0%24.5%
16.7%
13.5%11.9%
21.8%
32.7%
12.9%
28.1%17.3%
7.9%13.4%
0%
20%
40%
60%
80%
100%
Brazil Russia India China
Pe
rce
nta
ge
of
Re
sp
on
de
nts
Don’t know
Only remanufactured or refilledtoner or compatible supplies
Mostly remanufactured orrefilled cartridges or compatiblebut some OEM cartridges
Mostly OEM but someremanufactured or refilledcartridges or compatiblesupplies
We don’t use inkjet cartridges
Only new OEM branded inkcartridges
Q48: Inkjet Cartridges Typically Purchased for Inkjet PRINT Devices
Which type of inkjet cartridges does your company typically buy for your inkjet printers or multi-function devices?
N = 306 303 302 303
40 © 2009 InfoTrends, Inc. www.infotrends.com
66.1%58.2%
47.0%
15.8%36.4%
27.0%
18.1%
5.5%
38.7%
22.7%
26.1%
38.7%
0%
20%
40%
60%
80%
100%
Brazil Russia India China
Per
cen
tag
e o
f R
esp
on
den
ts
We usually buyready to usecartridges
Both about thesame
We usually take theempty cartridge tothe store for themto refill thecartridge for us
Q54: Whether Inkjet Cartridges are Refilled
For the non-OEM, refilled, remanufactured, compatible inkjet cartridges that you use.
N = 158 71 68 138
© 2009 InfoTrends, Inc. www.infotrends.com
MPS Impact on Supplies and our evolving need to print
42 © 2009 InfoTrends, Inc. www.infotrends.com
Reasons for Office PrintingPr
intin
g G
row
th
Time
Emerging RapidGrowth
Peaking Declining Fading
Read and Discard
Temporary Reference
TransactionsCollaboration/Editing
Archival/Storage?
43 © 2009 InfoTrends, Inc. www.infotrends.com
Document Printing Migration and Losses
ConventionalPrint
Magazines
NewspapersForms
Short run colorVariable data
On demand
ProductionDigital
StatementsInvoicesOffice
Photo Books
MarketingPromotionalMobility
Social Media
E-mailReports/Memos
44 © 2009 InfoTrends, Inc. www.infotrends.com
Office Document Printing LifecyclePr
intin
g G
row
th
Time
Emerging RapidGrowth
Peaking Declining Fading
Web Pages
Maps
Contracts/Legal Docs
Proposals
E-mail/MemosColor Brochures
MarketingCollateral
Mobile?
Social Media?
Financial Reports
Forms/Invoices
Engineering Docs
Spreadsheets
Presentations
Reports
Newsletters
45 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. MPS Market Forecast $M
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2008 2009 2010 2011 2012 2013
Supplies
Solutions
Services
Hardware
46 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. MPS Share of Supplies Market $M at Final point of Sale – Supplies in Office Environment (Excludes Home and Production)
0%
5%
10%
15%
20%
25%
30%
35%
2008 2009 2010 2011 2012 2013
47 © 2009 InfoTrends, Inc. www.infotrends.com
24.9%
28.4%
0%
10%
20%
30%
W. Europe US
N = 184 128Respondents who are currently engaged in MPS
Percentage of Money Initially Saved by Assessment
U.K. France, Germany
48 © 2009 InfoTrends, Inc. www.infotrends.com
MPS disrupting the supplies market
• Less print in the workflow
• More duplex printing
• Lower cost per page
Migration to more cost effective devices
Cost pressure across all classes of office devices
Increased use of 3rd party supplies
Controls on color
• Cost per coverage pricing model?
• Disruptions in the distribution channel
49 © 2009 InfoTrends, Inc. www.infotrends.com
Distribution Issues
• MPS impact on the channels?
Who will lose who will win the business as it shifts under an MPS plan
All suppliers need to position for MPS
• What is the role of the contract stationer in MPS?
• What is the role of the internet specialist?
• Distributors?
• How does MPS change supplies buying and delivery?
50 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. MPS Impact on Supplies 2010
Level of MS Service Channel Legacy of MPS Provider
End User Organization Size
Tier 1 - Supplies Only
Tier 2 - Perventative Maintenance/Standard CPC
Tier 3 -Advanced MPS
OEM Direct
OE Dealer
IT Reseller
PS/FM
Supplies
Small
Medium
Large
51 © 2009 InfoTrends, Inc. www.infotrends.com
N = 439
Not Important Extremely Important
Q.26: Rate the importance to each of the following criteria to why you chose to engage in Managed Print Services? (1 to 5 - 1 not important to 5 extremely important)
Mean Importance of Criteria in Choosing to Engage in Managed Print Services – Total (Q.26) (1)
U.K. France, Germany
3.2
3.2
3.4
3.4
3.5
3.5
3.7
1 2 3 4 5
Wanted to have ONE Predictable monthly chargefor of our services
Wanted to have our supplies managed by ONEvendor
Wanted to have SERVICE of my copier/printersmanaged one vendor
Wanted to have our SUPPORT of mycopier/printers managed one vendor
Wanted to consolidate all of my Printer/Copierhardware under one contract
Wanted to reduce costs which included theOptimisation of our fleet of products
Wanted to improve costs
52 © 2009 InfoTrends, Inc. www.infotrends.com
Importance of Criteria for Engaging in Managed Print Services (1)Rate the importance to each of the following criteria to why you chose to engage in Managed Print Services?
N = 343
Very ImportantNot Important
Source: Professional & Managed Print Services Multi Client Study
U.S MPS Study
3.7
3.8
3.8
3.8
3.9
3.9
4.0
1 2 3 4 5
Wanted a vendor that could provide printmanagement across multiple HW vendor
products
Wanted to have ONE Predictable monthly chargefor of our services
Wanted to consolidate all of my Printer/Copierhardware under one contract
Wanted to reduce costs which included theOptimization of our fleet of products
Wanted to have SERVICE of my copier/printersmanaged one vendor
Wanted to have our SUPPORT of mycopier/printers managed one vendor
Wanted to improve costs
53 © 2009 InfoTrends, Inc. www.infotrends.com
Current Types of Supplies Companies Are Getting Through MPS Services (Q.88)
N = 208Respondents who are currently engaged in MPS
Q.88: What types of supplies are you currently getting through your MPS services?
Just original equipment
manufacturer supplies; 52.40%
A combination of all of the above;
30.80%
Just recharged supplies; 10.60%
Just 3rd party manufac-turer supplies; 6.30%
U.K. France, Germany
54 © 2009 InfoTrends, Inc. www.infotrends.com
Type of Supplies Received Through MPS Services
Just 3rd party manufacturer
supplies16.6%
A combination of all of the above
38.2%
Just recharged supplies
5.1%
Just original equipment
manufacturer supplies
40.1%
What types of supplies are you currently getting through your MPS services?
N = 157 Respondents involved or familiar with Managed Print Services who are currently using Managed Print Services for their company
Source: Professional & Managed Print Services Multi Client Study
U.S MPS Study
55 © 2009 InfoTrends, Inc. www.infotrends.com
General Category of Supplies Company Opt to Use More of
Branded toner or ink cartridges
(same brand as copier, printer
equipment)46.1%
Other independent brand of toner or
ink cartridges15.8%
Remanufactured toner or ink cartridges
38.2%
N = 76 Respondents that have used/is using document assessment software or has engaged in some sort of consulting services
What general category of supplies did your company opt to use more of as a result of its document assessment?
Source: Professional & Managed Print Services Multi Client Study
U.S MPS Study
56 © 2009 InfoTrends, Inc. www.infotrends.com
Marking Supplies Distribution Channel Share
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011
Other ChannelsInternet SpecialistOther Consumer RetailerPaper MerchantHardware Vendor DirectForms MFR/Dist.Direct Mail CatalogsWarehouse ClubsComputer SuperstoreOffice SuperstoresPrinter DealersBTAIP SpecialistSmall BPIAContract Stationer
MPS
Which channels will make way for MPS?
© 2009 InfoTrends, Inc. www.infotrends.com
Green/Environment
58 © 2009 InfoTrends, Inc. www.infotrends.com
N = 319
Importance of Environmental Features When Making the Decision to Purchase Printer Products How important are the following environmental features when making the decision to purchase printer products for your business?
41.4% 33.9%
24.5%
27.3%
17.9%
21.3%
16.6%
14.4%
35.7%
36.4%
41.4%
36.7%
41.1%
25.7%
24.5%
27.9%
30.4%
32.3%
0% 20% 40% 60% 80% 100%
Other
Automatic Duplex Printing Setup
Capture & Deliver Documents Electronically
Energy Star Certification
Print Saver Mode
Recycling Programs (Ink, Toner - Cartridges)
Not important at all Somewhat unimportant Neither important or notSomewhat important Extremely important
59 © 2009 InfoTrends, Inc. www.infotrends.com
USA: OEM Toner Cartridge Return Programs
Company Program Name Year Began
Canon Canon’s Toner Cartridge Return Program Recently expanded
1990
Dell Use and Return Program 2003
Epson Epson Toner Recycle Program 2005
HP Planet Partners 1991
IBM IBM Printer Supplies Return Program 2001
Lexmark Lexmark Cartridge Collection Program
1996
Ricoh Used Toner Cartridge Collection Program
1995
Samsung STAR (Samsung Take Back and Recycling Progam)
2008
Toshiba Close the Loop’s “Zero waste to Landfill” recycling program
2008
Xerox Green World Alliance 1960s
60 © 2009 InfoTrends, Inc. www.infotrends.com
USA: OEM Inkjet Cartridge Return Programs
Company Program Name Year Began
Dell Inkjet Recycling Program
2003
HP Planet Partners 1998
Epson Ink Cartridge recycling program
Lexmark Lexmark Inkjet Cartridge Return Program (Close the Loop)
1996
61 © 2009 InfoTrends, Inc. www.infotrends.com
Environmentally Responsible Printer Brands
44.2%
0.3%
0.9%
0.9%
0.9%
0.9%
1.6%
2.2%
2.5%
4.7%
5.3%
5.3%
6.9%
23.2%
0% 20% 40% 60%
Don’t Know
Samsung
Brother
Kodak
Konica Minolta
Fuji
Epson
Ricoh
None
Dell
Canon
Lexmark
Xerox
HP
Please indicate which of the following printer/printing brands are best described by the following statements: 'is environmentally responsible'
N = 319
62 © 2009 InfoTrends, Inc. www.infotrends.com
USA and W. Europe Remanufacturer Laser Cartridge Flows
Users Throw Out80%
Remanufacturer Collects
20%
Land Fill
80%
~26% Bad*
~74% Good*Remanufactured
Recycle or Landfill
= Recollect only 15% of cartridges needed
85% fall out of the loop
20% are Collected again
63 © 2009 InfoTrends, Inc. www.infotrends.com
USA and Europe Remanufacturer Inkjet Cartridge Flows
Remanufacturer Collects
14%
Users Throw Out86%
Land Fill
86%
~30% Bad*
~70% Good*Remanufactured
Recycle or Landfill
= Recollect only 10% of cartridges needed
90% fall out of the loop
14% are Collected again
64 © 2009 InfoTrends, Inc. www.infotrends.com
U.S. What happens to Cartridges/components that remanufacturers collect but can’t use or sell?
Recycle9%
Waste to
Energy20%
Landfill71%
Laser
Recycle5%
Waste to
Energy35%
Landfill60%
Inkjet
© 2009 InfoTrends, Inc. www.infotrends.com
Update on Legal Issues
66 © 2009 InfoTrends, Inc. www.infotrends.com
Patents and Intellectual Property
• OEMs are increasing their vigilance to protect their intellectual property
• Increasing pace of lawsuits and actions through the US Government International Trade Commission to receive damages, court injunctions or exclusion orders to protect against product that infringes intellectual property
• We expect that US based vendors and resellers will develop a heightened concern about new-build supplies especially those made in China.
67 © 2009 InfoTrends, Inc. www.infotrends.com
Companies Involved in Recent Suits with Lexmark, HP, Canon or Epson
Companies Lexmark HP Canon Epson
Ninestar Technology Company, Ltd. ● ● ● ●
Ninestar Image Co. Ltd. (a/k/a Ninestar Technology Co., Ltd.) ● ● ●
Ninestar Image Int’l Ltd. ● ●
Acecom Inc.-San Antonio d/b/a Inksell.com ● ●
ACM Technologies, Inc. ● ●
Copy Technologies, Inc. ● ●
Direct Billing International Incorporated d/b/a Office Supply Outfitters and d/b/a The Ribbon Connection
● ●
Print-Rite Holdings Ltd. ● ●
Nano Pacific Corporation ● ●
Nectron International, Inc. ● ●
Mipo International Ltd. ● ●
Comptree Ink d/b/a Meritline ABCInk, EZ ● ●
Printer Essentials.com, Inc. ● ●
Mextec d/b/a Mipo America Ltd. ● ●
Seine Image International Co., Ltd. ● ●
Town Sky Inc. ● ●
Zhuhai Gree Magneto-Electric Co. Ltd. ● ●
Ziprint Image Corporation ● ●
68 © 2009 InfoTrends, Inc. www.infotrends.com
Companies Involved in Recent Suits with Lexmark, HP, Canon or Epson
Companies Lexmark HP Canon Epson Companies Lexmark HP Canon Epson
123 Inkjets.com ● Jahwa Electronics Co., Ltd. ●
123 Refills, Inc. ● John Does 1-20 ●
Abacus 24-7 LLC ● L2 Commerce, Inc. d/b/a PrintMicro.com ●
ABCCo.net, Inc. ● Laser Toner Technology, Inc. ●
AcuJet ● LD Products, Inc. ●
All Amedia Outlet Corp. d/b/a Inkandbeyond.com ● Linkyo Corp. d/b/a Supermediastore.com ●
Alpha Image Tech ● Master Ink Co., Ltd. ●
Apex Distributing Inc. ● Media Street Inc. d/b/a mediastreet.com ●
Artech GmbH ● MicroJet Technology Co., LTd. ●
Asia Pacific Microsystems, Inc. ● Mipo Science & Technology Co., Ltd. ●
Aurora Eshop, Inc. d/b/a butterlyinkjet.com ● Mipo Technology Limited ●
Butterfly Print Image Corp. Ltd. ● MMC Consumables Inc. ●
C&R Services, Incorporated d/b/a C&R Distributors and C&R Distributing ● Ninestar Japan Co. ●
Cartridge Hut and Paperwork Plus ● Ninestar Management Co., Ltd. ●
Cartridges R Us, Inc. ● OHM Electric Inc. ●
Chung Pal Shin ● Ourway Image Co., Ltd. ●
Clickinks.com, LLC ● Polek & Polek Inc. ●
Color Creation Inc. ● Price-Less Inkjet Cartridge Co. ●
Compu-Imaging, Inc. ● PTC Holdings Limited ●
Copylite Products Corp. ● Quality Cartridges, Inc. ●
Dataproducts USA LLC ● R & L Imaging Group, Inc. formerly known as IEM Consumables, Inc. ●
Eforcity Corporation d/b/a Eforcity.com ● Red Powers, Inc. ●
EIS Office Solutions, Inc. ● REV Corporation ●
E-Toner Mart, Inc. ● Ribbon Tree (USA) Inc., dba Cana-Pacific Ribbons Inc. ●
Futurewell Holding Limited ● RibbonTree (Macao) Trading Co., Ltd. ●
Gerald Chamales Corp., d/b/a Rhinotek Computer Products ● Shanghai Angel Printer Supplies Co. Ltd. ●
Global Business Support Systems, Inc. d/b/a Printcountry.com ● Shenzhen Print Media Co., Ltd. ●
Glory South Software Manufacturing Inc. ● SinoTime Technologies, Inc. d/b/a All Colors ●
Huizhou Jahwa Electronics Co., Ltd. ● SmartOne Services LLC d/b/a InkForSale.net ●
IJSS Inc., d/b/a TonerZone.com Inc. and d/b/a Inkjet Superstore ● Tatrix International ●
Ink Lab (H.K.) Co. Ltd. ● Tully Imaging Supplies Ltd. ●
Ink Tec America Corporation ● Union Technology Int’l (M.C.O.) Co. Ltd. ●
Ink Tec Co. Ltd. ● Virtual Imaging Prouducts Inc. ●
Ink Technologies Printer Supplies, LLC d/b/a Ink Technologies LLC ● Wellink Trading Co., LTd. ●
Inkjetmadness.com d/b/a inkgrabber.com ● XP Solutions Properties, LLC d/b/a Clickinks.com ●
Inkjetwarehouse.com Inc. ● XSE Group, Inc. ●
InkPlusToner.com ● Zhuhai National Resources & Jingjie Imaging ●
IowaInk, LLC d/a/b iowaink.com ● Zhuhai Seine Technology Co., Ltd. ●
69 © 2009 InfoTrends, Inc. www.infotrends.com
82.0%
44.9%
90.4%
7.8%
9.2%
5.6%10.1%
45.9%
84.8%
10.6%
4.0% 4.6%
0%
20%
40%
60%
80%
100%
Brazil Russia India China
Per
cen
tag
e o
f R
esp
on
den
ts
Don’t know /not sure
No
Yes
Q55: Opinion on Counterfeit Cartridges
Do you believe that there is a lot of counterfeit toner and inkjet cartridges in the market?
N = 306 303 302 303
70 © 2009 InfoTrends, Inc. www.infotrends.com
73.9%
22.4%
64.6%
26.1%
77.6%
35.4%
16.5%
83.5%
0%
20%
40%
60%
80%
100%
Brazil Russia India China
Per
cen
tag
e o
f R
esp
on
den
ts No
Yes
Q56: Counterfeit Cartridges Causing Problems
Do you believe that counterfeit toner and ink cartridges present a problem for your company?
N = 306 303 302 303
71 © 2009 InfoTrends, Inc. www.infotrends.com
Summary
• US and WE are flat with potential for slight revenue growth
• MPS is a threat to the supplies market growth
• MPS likely increases aftermarket share and disrupts the channels
• Green is of growing importance but may have the PR edge
• Legal is moving into high gear