Business Development Strategy: Purchase Digital Label and Packaging Presses
The numbers are in: A red-hot business development strategy should include the acquisition of a color digital web press. According to industry research, sales of this equipment is expected to jump from $2 billion to $4 billion in the next three years -- signs of an unmistakable trend for our industry.
To keep pace with Joneses, you should strongly consider color digital web presses as an attractive alternative to flexo and other conventional narrow web label presses.
The technology provides shorter runs for customers who have more SKUs and thus more versions of labels to print. Market estimates over $55 billion in sales to businesses like food retailers, wineries, makers of nutritional supplement; these are all examples of segments that have a high need for short run, multi-lingual label printing.
Printers smell the business opportunities. Research provided by InfoTrends and PRIMIR projects the sale of color digital label and packaging presses (EP and inkjet combined) jumping from $2 billion in early 2012 to just under $4 billion in 2015.
Today 14,000 to 15,000 color digital label presses operate globally. There is strong projected growth in label markets such as:
- Security Functional Requirements
- New Identification
- Packaging - Corrugated
- Specialty Converting
Now, just because there is a gold rush of sorts occurring in digital label printing, it doesn’t mean you should ignore all the principles of good marketing.
There will be many players flooding the industry, so the key is to establish a specific niche.
Do you want to specialize in security? Can you add value with multi-lingual services? Remember, the more narrow your focus, the more effective your marketing will become.
This is an example of a market trend you should integrate into your strategic thinking. Hoping for a return to the old ways won’t help a struggling business. Take this data seriously, and start taking action.
(Photo by IvanWalsh.com)
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Rock LaManna provides executive coaching for printing owners looking to grow their printing business, merge with a synergistic partner, make a strategic acquisition, or create a succession plan.