developments and trends in the online print industry of 2017

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What we’re talking about …… in the next 40 Minutes?

› What’s the Status Quo of Online Printing today?

› How Amazon is staring to discover online print.

› What are the major constructions areas for online print today?

› How mass customization will change the online print world….


Online Customization

+ Textiles

Traditional Print Provider

There is no such thing as “the” typical online print provider …

5

Let’s talk about “sales generated online” …

Classic “Print Store”

B2B Platform/Procurement

PlatformOnline Print

Broker Online Print

Reseller


Global print volume by revenuetotal print volume in 2014: 288 bn. EUR (production print/commercial print)

6

source: PIRA /RISI/Heidelberg/zipcon consulting

67

20

74 15

636

7024 %

Asia/Pacific

26 % West-Europe

2 % Middle East/Africa

5 % Eastern Europe

23 % North America

7 % South America

13 % China/HK


Online print share in the global print volumeonline generated print volume in 2014

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source: zipcon consulting

8 %Asia/Pacific

15 % West-Europe

0,7 % Middle East/Africa

7 % Eastern Europe

12 % North America

5 % South America

10 %China/HK


Global print volumes in the online printonline generated print volume in 2014Tsd. billion pages A4 (44 trillion printed pages worldwide, 88% in offset printing)

8


8 %Asia/Pacific

15 % West-Europe


7 % Eastern Europe

12 % North America

5 % South America

10 %China/HK

1.214

154

1.716 154

6572

845


Global print volumes in the online printonline print size 2015 in bn. EUR

9


8 %Asia/Pacific

17 % West-Europe


8 % Eastern Europe

13,5 % North America

6 % South America

11,5 %China/HK

9,05

1,2

12,6 1,2

0,074,14

5,6


Global print volumes in the online printonline generated print volume in 2015Tsd. billion pages A4 (44 trillion printed pages worldwide, 87% in offset printing)

10


8 %Asia/Pacific

17 % West-Europe


8 % Eastern Europe

13,5 % North America

6 % South America

11,5 %China/HK

1.366

185

1.945 176

10658

845


Trend: Online print share in the global print volumeEstimated online generated print volume by 2020 – Update 2016

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32 %Asia/Pacific

42 % West-Europe

6 % Middle East/Africa

25 % Eastern Europe

28 % North America

18 % South America

35 %China/HK


2017: Open Stores – Online Print’s Track Record of Success Continues

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15.4 % growth to approx. 3.0 bn € * in D/A/CH

› Further growth in 2017› Growth rate higher than expected …

› … but first-generation online stores are stagnating - or losing sales/customers

› Entry of new players into the D/A/CH market

› Trend: customized B2C products promoted via Facebook are gaining popularity

* = Sales in bn € of all B2C products, incl. photobooks, textiles, promotional media and print – not including Closed Store (B2B) sales

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 %


Trend in Online-Driven Sales in 2017- Forecast

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B2B/B2C

Switzerland

Germany

Austria

Market forecast D/A/CH 2017 - 7.5 bn €

3.12.34

0.850.41

0.55

0.25

4.53.0

B2C B2B

B2C

B2C

B2C

B2B

B2B

B2B

7.5 bn €

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



Forecast: Online-Driven Sales in D/A/CH

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Open/Closed Stores – Growth in Both Segments


1,40 1,70 2,10 2,30 2,50 2,60 3.001.50

2.00

2.60

3.203.60

4.10

4.50

2011 2012 2013 2014 2015 2016 2017Open Store sales

Closed Storesales

Open Store forecast

Closed Store forecast

+ 9.76 %

+ 15.38 %

Forecast 20177.50 bn €

› Forecast: growth to 7.5 bn € in D/A/CH –online print in CH gaining greater acceptance


0

100

200

300

400

500

600

2011 2012 2013 2014 2015 2016Cewe/Saxo/Foto 480 503 527 524 554 593Flyeralarm 237 257 280 307 316 330WmD/Cimpress 9 23 48 95 252 274United Print 49 52 55 60 65 70Onlineprinters 45 60 75 89 96 105

Mill

ion

Euro

s/Sa

les

Sales Generated by Top 5 Online Print Store Providers 2011 – 2016

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Total sales by Top 5

1.37 bn

+ 7.04 %+ 4.43 %+ 8.73 %+ 7.69 %+ 9.38 %


Future Potential? No. of Print Companies Continues to Decline …

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Large print factories are benefiting – Smaller providers cannot compete

Quelle: Apenberg & Partner

FTE ranges

Number of German print businesses

2000 2005 2010 2015 2020 2025 2030

Business as of 2015

5.958

1.088

871

348

248

10


Future Potential? Print in Germany Continues to Contract …

17

Print market set to contract by 2025, yet at approx. -1% p.a. slower than forecast

Source: bvdm, Apenberg & Partner, zipcon consulting

0.1 0.1 0.1 .0,11.1 1.2 1.3 1.31.2 1 0.9 0.9

1.3 1.3 0.9 0.9

1.3 1.2 1.1 1.1

1.6 1.1 1.2 1.2

1.71.7 1.6 1.5

5.65.4

5.1 4.5

2010 2015 2020 2025

Marketing Material

Print, other

Magazines

Business Print

Newspaper

Books

Label

CalendarsForecast does not include

Packaging


No Time to Rest Up: Challenges …

18

Five issues that the online print industry will have to address in the next few months …

› Amazon› … is testing the online print market. Market entry on the quiet?

› Pure-Play on the way out, Multi-Play on the way in› … the “local” online print provider is becoming increasingly popular

› Mass Customization › … only a few consistent strategies in D/A/CH

› Emotional Commerce – Customer Centricity› … online print stores must get away from being “boring”

› Internationalization› … Europe is essential – Print “made in Germany” has great sales

opportunities in neighboring European countries


Next big thing: Amazon Marketing Services

19

AMS – an effective new marketing tool at the “Point of Search”

› Will AMS overtake Google? Amazon already dominates the “search entry point”› AMS records buying interests, names and addresses› Simple addressing of customers – direct to “product search”› Strategy: … reaching out to customers where Amazon flags “print”?

Where do online product searches start – 2015 and 2016 compared: Amazon dominates the search entry point at 55% – Source: BloomReach Survey, 2016


Work in Progress: Mobility (…once again)

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Zipper Presentation Slide, OPS2016/2015

The same goes for mobile …


Work in Progress: Quality

21

Online print generally delivers great quality, but errors keep on occurring

› Errors that have repeatedly caught the zipcon team’s eye for 12 months now (!):› Business cards – uneven bleeds › Inks not dried thoroughly, pages stuck together › Uneven bleeds – white “streaks” on black products


Work in Progress: Quality + Packaging

22

Reality check after more than 200 mystery shopping orders …

› Packaging› Parcels frequently damaged on arrival at the customer – content therefore unfit for use› Inadequate packaging

› Business cards fall out of parcels when you open them

› Print products are often inadequately secured in place

› Posters are packaged in a rolled up state, are damaged when being rolled up

› Shipping› One provider shipped the wrong products several times› 2 out of 4 test orders were mixed up


Work in Progress: Complaints Management

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Reality check after more than 200 mystery shopping orders …

› Support management often inadequate› Usually a lack of clear guidelines for handling complaints

› No clear definition of when, how and with what gesture of goodwill complaints should be dealt with

› Complaints handling cycles are too long

› Extreme example: an overnight reprint was only actioned two weeks later, although the error was known and accepted on Day 1

› Embarrassing: customer had paid for an overnight service …

› Problem: Coopetition› Often there are evidently no consistent quality standards› Quality control? Often a total lack of!


Work in Progress: “Genuine” eCommerce

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… there’s still a long way to go to setting up “user-friendly” stores.

› Website› Frequently not set up to be 100% responsive -> therefore not “mobile-friendly” either› Design/UX – often not compatible – “user experience” is evidently an alien concept to many› Too many compromises: yes, yes – print is special – but eCommerce has its own rules …

› Product Configuration› Often confusing and not target audience-specific› Configuration-related correlations are not clear to the user

› e.g.: relationship between format, substrate and printing method

› Lack of pricing transparency› The sum total resulting from configuration changes is only displayed at the end of the configuration process.

The composition of the sum total and the consequences of any changes are often not clear.


Work in Progress: Mass Customization

25

… lots of providers are experimenting with it.



26

… and one is just getting on with it.



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Personalized print as a standard for the future?

› Many providers underestimate MC concepts and focus on automation and eCommerce …

Period of Mass Production

Period ofMass Customization

http://dict.leo.org/german-english/period

http://dict.leo.org/german-english/period


Digital Ditch at D/A/CH

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Smaller Online Printers need to learn “how to be digital” ….


Work in Progress: Customer Centricity

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Customer Centricity DNA for online print – turning customers into fans …

PRMailing

Print/TV

Social

E-Mail Website

Chat Blog

Sale Call

Coupon

Social SEO

SEO

SEA

APP

Webstore

Portfolio eCommerce

SMS

E-Mail

Community

Social

UX

FAQ

E-MailMailing

Webstore NP

E-Mail Reviews Community

Social Events

UX Chat UX UX

Product Configurator

ProductConfigurator

ProductConfigurator

Portfolio


Work in Progress: Customer Centricity

30

Many online print providers ignore key issues.Result: customers “restrict” their choice to “cheap” …

PRMailing

Print/TV

Social

E-Mail Website

Chat Blog

Sale Call

Coupon

Social SEO

SEO

SEA

APP

Webstore

Portfolio eCommerce

SMS

E-Mail

Community

Social

UX

FAQ

E-MailMailing

Webstore NP

E-Mail Reviews Community

Social Events

UX Chat UX UX

ProductConfigurator

ProductConfigurator

ProductConfigurator

Portfolio


Work in Progress: Marketing

31

Providers that have not evolved into brands at the right time have to invest …


Conclusion: online print involves more than just having an online store

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Those that want to bridge the “digital divide” have to work hard to achieve it.

› Never before …› … in the history of the print industry have there been so many sales channels for print› … have there been so many opportunities to generate sales using print products› … has it been so “easy” to showcase a product portfolio› … has it been so important to champion your own business NOW - rather than simply acting as a

“fulfilment agent” for other providers

› Therefore smaller online print providers in particular have to understand that customer centricity and the right marketing mix are just as vital as first-rate production facilities!

› Tip: act now – and don’t wait to “ride on someone else’s coattails” …!


The “Digital Ditch” becomes a Businessfield enabler

33

Smaller Online-Printers will needa solution that helps them to

solve their automation problemsand to stay in the „online print race“

Because…


What will happen to the big players and the market?

34

Big Online Printers have tobecome „Print Factories“


Conclusion.

35

Print will be online in future.Print industry has to transform.

Print suppliers have a historic chancenow to implement new online

business models into the market.

Just do it.

QUESTIONS? [email protected]

Thank you for being so attentive.


To Finish … Top Miniaturization Trend from the UK

37

Moo saves on materials and presents the business card in SIM format

Moo announcement dated 1.4.2017

developments and trends in the online print industry of 2017

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