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Global Channel Partners Summit 2012Presentations: http://ilink.me/Dealer
The State of the Channel: 2012
DOES IT REALLY MATTER?
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Channels are the least flexible aspect
of the marketing mix. This is an open
invitation to new competition.
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In the Battle for “Place,”Convenience Wins
versus
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The State of the Channel: 2020
BREAK WITH TRADITIONBEFORE SOMEONE ELSE
BREAKS IT FOR YOU
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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)
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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
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What Do TheseTrends Mean?
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By 2020, per capita consumption of US commercial print
will drop by -25% or more
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Fewer US Commercial Printing establishments: down 1/3 by 2020
… or worse…
-40% from 2012 to 2020
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Content is Still Being Created
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Ad Agency + Graphic DesignEmployment Now Exceeds That of Commercial Print
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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
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CapEx investment rate shrinks
• CapEx decreases from 5% to 3% of sales
• Dealer opportunity:new homes for current installed base as industry consolidates
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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
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Commercial Printing’sSurvivors Will be
HealthierSmaller
Media IntegratedFocused on Specialties
Broadly Dispersed
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Smaller markets+
More complexity=
Channel Restructuring
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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
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Does Digital Media HoldOpportunities for the
Dealer/Independent Rep?
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If You Believe in “Marketing Services” You Believe in this Chart
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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
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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
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Today’s “Mainstream Print” Decreases in Volume
• Specialty production is more tactical than strategic
• More specialized equipment, niche tactics, approaches
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Channel Questionsfor 2012-2020
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Are dealers the“systems analysts” for marketing services /
communications logistics?
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Are dealers the newCapEx sales and service
infrastructure for the industry’s former
high-flying vendors?
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Can dealers bring new ranges of specialties to
printers anxious for new revenue streams?
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If you want thingsto stay the same,
things will have to change
The LeopardGiuseppe Tomasi di Lampedusa
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QUESTIONSThank You Very Much!