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August 9, 1999
TrendWatch Variable Printing Report Announced
HARRISVILLE, RI - August 5, 1999 -- Variable data printing (or as it
is often called, variable personalized printing) has been a main interest
of printers and suppliers for the last six years as a revenue-generating
capability of the digital press. And while much has been written and discussed
about the topic, digital printers have had difficulty implementing it.
Responding to this growing need, TrendWatch announced the release today
of a new special report which defines this market, forecasts its future,
identifies influences which will guide its acceptance, and examines marketing
approaches used today by industry suppliers. The new report, "The
Variable Data Commercial Printing Report: What Works, What Doesn't",
is available now from TrendWatch.
Variable data printing is still in its infancy, thus complex. Not only
does it require printers to be experts at using their relatively new digital
presses but they must also understand databases, direct marketing, their
customers' customers as well as how to market this new capability to their
clients. Competitors to variable printing have been around for a long
time: segmented printing (seen in magazine publishing), customized printing
(smaller target markets, a la direct marketing), and now, the Internet.
The Internet competes with variable data printing because the web site
experience is controlled by the consumer, making it far more powerful
than print.
"The big question is, "Is there a market for variable printing?"
notes Dr. Joe Webb, TrendWatch Partner. "While there was much hoopla
about the market for digital printing when this technology was first introduced,
digital printing businesses have learned to take the overly optimistic
prognostications for variable printing with a grain of salt . Many are
cautious and struggling with the difficulties of the entire process. Certainly
a market exists. However, some digital print shops have to invent their
own business models to successfully market variable digital commercial
printing."
The Variable Data Report describes the growth of this market since printers
started buying digital presses and estimates the current size of the market.
And in forecasting this market, the report examines the barriers and drivers
of its destiny. Some of these barriers include the complexity of working
with databases on the front end of a print job, understanding databases
(mailing lists) and direct marketing strategies, as well as best proofing
methods and recurring questions about how to price jobs.
This new report also provides case studies of digital printers that are
making the most of this capability. It describes on-going efforts by suppliers
to facilitate the process and support digital printers. And the report
outlines the educational imperatives that suppliers and all concerned
must address in creating awareness and capabilities to use these technologies
among print buyers. Educating customers to the benefit of variable data
printing is a major challenge but essential to the expansion of this market.
The following is an analysis excerpt from the TrendWatch special report
entitled "The Variable Data Commercial Printing Report: What Works,
What Doesn't":
Historical Intent to Purchase Digital Presses: The market for future purchases
remains narrow. Starting with the Spring 1996 TrendWatch Printing survey,
7% of respondents said they planned to purchase a digital press in the
next 12 months. In the Fall 1996 survey, purchase intentions reached an
all-time high of 8% , but dropped steadily in later surveys, holding at
3% through 1998. In the Spring 1999 survey, they rose only slightly, to
5%. As would be expected, investment plans are highest in the trade services
-- 7% of service bureaus and 9% of separators and platemakers -- and lowest
among commercial printers (4%).
Intent To Purchase Digital Presses: As low as the numbers are, they may
still be too high, and not reflect marketplace realities. If they actually
translated into sales, this would mean that 3,759 of these presses would
have been sold between Fall 1996 and Fall 1997; 1,656 would have been
sold between Fall 1997 and Fall 1998; and 1,211 would be sold in the next
12 months. Considering that there are only approximately 3,900 of these
presses of all types installed after six years, we think printers' survey
responses are far too optimistic. This is also clear from the fact that
purchase intentions are highest among small shops (1-9 employees), which
usually do not have the annual revenues or financial resilience to purchase
these technologies and successfully develop the marketing capabilities
needed to support these presses.
Database Marketing Projects" As A Sales Opportunity: There is some
hope in the latest surveys. Digital printers as well as print buyers may
be waking up to the database marketing opportunity. Our most recent TrendWatch
Printing figures show that 34% of shops with digital presses see digital
asset management services as a top sales opportunity. This is a dramatic
increase from the data reported in Strategies for Management's "Electronic
Color Printing 1997 - 2007" report, in which only 7% of digital printers
gave this answer. But it won't be easy, and they know it. Eighteen percent
of digital printers also cited "implementing digital asset management
capabilities" as a top business challenge -- three times the percentage
of TrendWatch Printing respondents who gave this answer overall.
The "The Variable Data Commercial Printing Report: What Works, What Doesn't" report, is over 100 pages of commentary and data. It is available in hard copy or CD-ROM Acrobat PDF format for $1250. Interested parties can order on the website or by contacting either Dr. Webb at 401-568-9899 or Jim Whittington at 415-380-8561 or by email at partners@trendwatch.com.
