Commercial printing does not sound like a growing business, but it is full of potential in a considerable area.
Global sales of color digital printing are growing at an annual rate of 18% and are expected to reach $31 billion by 2005. Why?
On the one hand, the quality is as sharp as the traditional printing press, and the technology also allows for mass instant customization that marketers like.
Retailers like Macy's may end up ordering 3,000
Minutes of mail, from sales tracking, able to target customers who desire a specific color.
Therefore, the red sweater was mailed to a woman;
To her neighbor, Brown.
The response rate for personalized advertising is as high as 30%, while the response rate for non-personalized advertising may be 2%.
This high-end business is the backbone of the old printing industry ---
Hedberg Drucker maschin, a lowprofile, 152-year-
Old printing machine manufacturer in Germany-is after.
It's a scuffle with the financial difficulties of Xerox and the management of distracted Hewlett-Packard.
Packard will occupy the market for color digital printers: Industry-
Grade, electronic printing machine, can produce thousands of full
Personalized documents.
There is no market leader in this industry.
The key to who wins this battle will be to customize the printed location.
(Germany)HD)
It's the third of $5.
Sales from the United States are 3 billionS.
, Has a great influence in the main printing factory.
Its offset printing machine (
Mechanical structure of two cars)
They are used to produce millions of pages of magazines, catalogues, and annual reports.
Xerox has mid-
Rung trade: Sir Kinkos and Speedys in the world, where small businesses may order a professional job. Hewlett-
Packard bank in the office and personal market.
47-Bernhard Schreier of Heidelberger Druck said: "We have a clear customer focus, that is, people who want to make money in printing . "year-
Old CEO, having breakfast at the Art Deco Company cafe in Heidelberg.
As an engineer, he joined the company in 1978 and three years ago received the highest position after helping to plan a strategy to expand the range of HD products through small acquisitions. In the color-
Digital competition, HD started late.
It makes printers for only five months;
Schle and HP
Packard has been doing it for ten years.
But Hedberg Drucker has a 40% market share. -
Twice its nearest opponent. -
In the machine responsible for printing Vogue fashion layout and unlit Coca and other thingsCola signs (
And the European version of this magazine).
Schreier's customers, these large printers, are facing increasing demand. -
Thousands instead of millions. -
Personalized colors.
Of the 1998 prints, 2,000 and less accounted for 28% of the total commercial volume;
Frank Romano of Rochester Institute of Technology said the figure is expected to jump to nearly 50% by 2020.
According to analysts at ubs Warburg in London, demand for standard commercial presses will only grow by 3% per year by 2005.
They say the demand for new digital machines should exceed 2007 of traditional equipment.
"Color Digital is the key to the survival of this market," Romano said . ".
For example, on a Offset Press, the information to be printed cannot be changed because it is burned to a metal plate.
Using numbers, the information to be printed is stored in a computerized database.
Each project can be unique. -
"For documents such as financial statements of retired service investors, this is the ideal choice . "R.
Donnelly for $5
8 billion printer based in Chicago.
To seize the opportunity, Hedberg Drucker has set up a joint venture with Kodak to produce the NexPress 2100, worth $350,000.
Schreier hope 70-pages-a-
By the end of 2003, minute wonder had a 20% share in the color digital space.
As users of the copier know, the purchase price is only the beginning.
Cost of consumables (
Such as extra cartridges)
Maintenance costs can be increased by another $50,000 per year.
So color digital printing is not cheap. -
5 to 10 cents per page, not a fraction of a penny.
Even with these advantages, color digital printing on more than 2,000 pages commercially is not economical.
But print customers will want those small orders, so where does that make Xerox?
Nearly a year behind.
Xerox will not provide its competitive products to the market until the medium term iGen32002--
After spending at least eight years and $1 billion developing the $500,000 machine. (
NexPress 2100 took only four years. )
"Hedberg Drucker has accepted 80 orders for NexPress.
Combined with services and consumables, a total of $32 million
Cartridges and parts
"Xerox won't get it," Romano said . ".
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Schle and others believe that other printers they produce can meet the needs of thousands of prints.
At least one customer disagrees.
Richard Nixon, director of London moderators
The regional printing factory said that NexPress is more versatile than other color digital printing machines because it can be printed on different paper and weights-
It's not just the special processed paper used on the digital machine.
Quality is the key.
"For the other color digital presses we use, the color quality may vary from the start to the end of the run.
Using NexPress, the color quality is clear and consistent from beginning to end, he said. Hewlett-
Packard entered the professional market in September by acquiring indigo from the Netherlands.
Israeli companies with sales of $0. 165 billion in 2000.
While HP is a world leader in desktop color printing, it can't wait to adapt its technology to the business market.
Its biggest challenge will be to attract the attention of top-level printers.
"Coming from the top and stepping down is always easier than schle and HP are trying to do: coming from the bottom and going one step further up, says Susan Schwartz, an analyst at M. M.
Fort Worth, an investment researcher at Hamburg.
Another problem facing Xerox's commercial printer is that its business model uses "click charge": customers pay for every page they print.
In contrast, Hedberg Drucker charges a fixed feefor-
Service is cheaper and more convenient for most commercial printers.
Terry Van Winkle, manager of Midland Press, a $21 million printing house in Davenport, Iowa, knows that the manufacturing Chamber criticized him in one way or another, but he says the Click charge is painful.
"No one can agree on the exact meaning of the click fee.
Is this the case through every page of the machine?
Is the blank page counted?
There are always differences, which can only cause a lot of headaches.
"Nevertheless, Michael Baer, who owns a $5 million print shop in Heidelberg, said he will investigate Xerox's iGen3 when it goes public next year because
Prior to that, he will use NexPress to fill out orders for students, artists, architects and small businesses.
"Orders can't wait a few more months," said byr . ".
"My business is turning to color numbers almost faster than I can keep up.
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