Printer Market Is Heating Up

If there is one market, which is really heating up, it is the printer
segment. Over the last couple of years, this segment of the industry has seen a
lot of action. And this action is continuously heating up with some new players
joining in and at the same time the existing ones are becoming much more
aggressive.

The latest to join the action is Xerox, traditionally known as a copier
company, a tag, which the company is trying very hard to shed. It signed up
Ingram Micro as its national distributor for low-end inkjet printers, high-end
laser printers, multifunction devices, digital copiers and fax machines.

Interestingly, this is the first time Xerox has gone through the distribution
route. Till recently, the company relied on its own sales force to sell its
product range. However, with the addition of printers, it had no choice but to
sign up Ingram.

The idea is to increase the Xerox mindshare amongst the channel community.
This it intends to do by conducting four to five channel programs every month
and also offer flexible credit terms. In addition, the company has significantly
upped its marketing spend.

At the same time, Canon, which has been present in the Indian market for
quite some time, has come out of nowhere and grabbed a big slice of the printer
market. Till the middle of 2001, its market share in inkjets was at an all time
low of less than five percent, which gave it the number three position after HP
and Epson.

But today the situation has reversed as the company's share in inkjets has
shot up to more than 20%. In the process, it has displaced Epson from the number
two slot and is giving HP--the market leader--a good run for money. The success
also spurred Canon to launch a range of digital cameras, video cameras,
projectors and multifunction devices.

At the same time, Epson has not exactly been sitting idle. Rather, it has
also got its act together and is now focussing a lot on the retail front and
increasing its penetration into the hinterland.

Lexmark, another leading vendor, is also coming into its own by making a lot
of noises amongst the channel community. In addition, it has increased its
marketing spend, opened more offices and upped its manpower to 20.

But probably the biggest noise in the last two years has come from Samsung.
It unveiled a wide range of lasers at absolutely unheard of prices, which forced
others—notably—HP to follow suit. In the process, Samsung has been able to
garner a significant share of the laser printer market.

At the same time, HP has had to constantly reinvent itself to counter the
competition coming from all corners. As expected, the company unleashed its own
fireworks, which has further heated up the market.

What should the channel partners expect? Plenty of big time action by way of
channel promotion schemes, bundling deals, incentives and more incentives. So,
sit back, relax and enjoy the action.

Asim Raina