Lasers: Everyones Choice
As in the previous years when the single function laser printer market demonstrated solid growth, FY 07 too was no different. This segment once again saw rapid growth with fast adoption by the SMB segment. The reasons are not too far to seek. As Sarkar puts it: "Higher printing speeds, falling prices and provision for enhancements in features have made this product a preferred choice of not only the corporate sector but also the SMBs."

In the past, laser printers were primarily used by the large corporates while inkjets were used by SMBs and home users with small printing requirements. Interestingly in FY 07, this stereotyped concept was done away with, as falling prices of laser printers induced the shift to upgrade.

FY 08 is expected to see a major price war among the major players. HP announced an aggressive strategy to grow the laser printer market as part of its three-pronged go-to-market strategy. Right from offering unit level replacements during warranty, to setting up 300 exchange points across 130 cities, and making entry-level laser printers more affordable, the company is looking to enhance its leadership. HP also launched a series of multi-function devices in FY 07 to empower SMBs, as there has been an acceptance for laser technology among this segment as well as the SOHO market. To celebrate the global sale of its 100 millionth laser printer, the vendor launched an entry level laser printer in the Indian marketthe Laserjet M 1005that also doubles up as a copier and scanner.

Looking to position itself as company that manages clients overall print services, HP launched more than a dozen separate multi-function laser printers including the M 5035. At 35 pages a minute, it can be touted as the industrys fastest desktop wide format (A3 size) printer. In its bid to be a network solution provider, HP introduced software solutions like Web JetAdmin that enables enterprises to closely monitor printer usage and performance.

Samsung also expanded its portfolio by announcing a slew of products including the CLP-300 color laser, the smallest color printer in its class. The vendor also launched four new network printers during the year taking the total to seven in its product portfolio. Keeping in line with its strategy to achieve the targeted growth for FY 08, Samsung expanded its sales and marketing force fourfold in the first quarter apart from going in for strategic distribution tie-ups to enhance territorial and market reach.

Looking to increase its share in the laser printer segment, Xerox opted for product portfolio expansion and positioned its entry-level laser product as a viable alternative to inkjet printers. The move comes in the wake of Xeroxs strategy to target the mass market for laser printers by making them more affordable. Brother International, a relatively small player in the stand-alone inkjet category expanded its presence and entered the laser printer segment with a host of offerings. The company targeted the home office and the SMB segment with MFC-7420 that incorporates features like flatbed copying, full-feature fax and color scanning.

Lasers, MFDs: Way to Go
The laser printer segment is likely to emerge as the most preferred printing technology in the years ahead with the vendors likely to compete to be the first to introduce models with higher printing speeds.

MFDs have managed to upset the market for inkjet printers, with lasers also managing to notch up significant sales in volume terms. With the price differential narrowing between laser printers and inkjet printers, the market for the laser printers is on the upswing. Giving due emphasis on the production printing business, Xerox India launched an Innovation & Technology Excellence (XITE) center with an investment of Rs 5 crore. The center was launched for providing a hands-on-experience to the customers on newer technologies. The vendor expects an increase in the customized data printing from 31% in 2003 to 49% in 2007. The SMB sector continues to be one of the largest customers followed by the government sector that continues to drive demand.

Stuti Das
stutid@cybermedia.co.in

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