Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

The State of the Channel: 2012

DOES IT REALLY MATTER?

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Channels are the least flexible aspect

of the marketing mix. This is an open

invitation to new competition.

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

In the Battle for “Place,”Convenience Wins

versus

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

The State of the Channel: 2020

BREAK WITH TRADITIONBEFORE SOMEONE ELSE

BREAKS IT FOR YOU

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

A Step Back: Why Channels?• Channels provide an advantage

not easy created internally• … fill a void in a unique way that

is proprietary and preferred• All channels exist to reduce the

total long-term cost and increase the effectiveness of a system of relationships

• (Selling direct is not always what it’s cracked up to be)

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Commercial Printing’sUndeniable Trends

• Fewer and smaller print businesses– Greater distance between commercial

print establishments

• Fewer suppliers• Shrinking offset installed base,

digital base increases• “Mainstream Print” disappears

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

What Do TheseTrends Mean?

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

By 2020, per capita consumption of US commercial print

will drop by -25% or more

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Fewer US Commercial Printing establishments: down 1/3 by 2020

… or worse…

-40% from 2012 to 2020

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Content is Still Being Created

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Ad Agency + Graphic DesignEmployment Now Exceeds That of Commercial Print

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Fewer suppliers• Excuse me, sir, I came here to see the

pre-press pavilion… can you tell me where that is?

• Influence of long-established vendors is diminishing– Kodak working through bankruptcy– Heidelberg stock about €1.20 ($1.50)– Presstek 50 cents per share– Xerox shares were about $12 at end 2011,

now are about $7.50

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

CapEx investment rate shrinks

• CapEx decreases from 5% to 3% of sales

• Dealer opportunity:new homes for current installed base as industry consolidates

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Decreases in overall demandcreate new channel opportunities• Suppliers need to cut fixed costs• Workflows must become focused

on multi-channel deployment• Printers seek new revenue sources• Content creators become new

opportunity for graphic arts dealersand reps

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Commercial Printing’sSurvivors Will be

HealthierSmaller

Media IntegratedFocused on Specialties

Broadly Dispersed

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Smaller markets+

More complexity=

Channel Restructuring

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

New Issues for theBiggest Traditional Suppliers

• Industry suppliers will restructure sales and service coverage– Shift from W-2 workers to 1099

independents and current dealers

• Independent technical and service personnel

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Does Digital Media HoldOpportunities for the

Dealer/Independent Rep?

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

If You Believe in “Marketing Services” You Believe in this Chart

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Print Workflow Transforms into Multichannel Deployment

• “BIG IRON”ERA– Single-purpose

CapEx– Buy once and

feed with consumables

• DIGITAL ERA– Multi-purpose

infrastructure– Constant CapEx

upgrades and integration

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

How Digital Media Changes the Print Workflow

• Printers used to enter new markets withnew equipment that would last years

• Printers will enter new markets with new software and new communications technologies that last for months

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Today’s “Mainstream Print” Decreases in Volume

• Specialty production is more tactical than strategic

• More specialized equipment, niche tactics, approaches

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Channel Questionsfor 2012-2020

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Are dealers the“systems analysts” for marketing services /

communications logistics?

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Are dealers the newCapEx sales and service

infrastructure for the industry’s former

high-flying vendors?

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

Can dealers bring new ranges of specialties to

printers anxious for new revenue streams?

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

If you want thingsto stay the same,

things will have to change

The LeopardGiuseppe Tomasi di Lampedusa

Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer

QUESTIONSThank You Very Much!