There are emerging opportunities in Indonesia printing business, especially from label-packaging (L&P), sublimation printer, and the use of online print hub. These new opportunities might be the “oasis” to keep the printing business survive during pandemic...
According to the IDC Worldwide Quarterly Industrial Printer Tracker, a combination from all products of industrial printers in Indonesia showed significant decline in the 2020Q1 period. Evidently, the industrial printer market declined by -49.10% from the previous quarter and -48.23% YoY. The toughest time for all printing industry players was from March until June. As leasing schemes get postponed, printing demand has decreased more than 70%. Consequently, some print service providers decided to close their business and lay off their employees.
“COVID-19 has impacted all sectors including printing business. But there are some opportunities that can be explored during this crisis time to flatten the curve and avoid bigger impact of recession,” says Muhammad Faris Latief, Market Analyst for IPDS at IDC Indonesia.
L&P demand – especially in label (both adhesive and string material) – is on the rise as the need of F&B, pharmaceuticals, and households grow significantly during this pandemic. Some companies stated that print jobs and numbers of labels that needs to be printed grew by about 200-300% from March to June. Big companies of F&B and pharmaceuticals needs to print their new SKU’s as soon as possible, but the conventional label converter limits their activity.
Digital L&P is the only reasonable choice to get their mid-run printing jobs to be done, as digitalization could simplify the workflow and the process of label – printing faster than flexo or rotogravure. It gave momentum to digital L&P to show their capabilities during this pandemic.
Another opportunity come from sublimation printers which show significant increase even if the general market has plunged in the past quarter. Presently, the demands for jersey, clothing and home decor has been shrinking. However, the demand for mask with polyester fabric base remains high – especially the scuba mask. This kind of order might be the alternative income during this crisis, and allows more cashflow for print service providers and commercial print to keep on “breathing”.
Currently, people who wants to print – to avoid and minimalize the direct contact – choose to use the print hub or online print shops to keep their order being printed. Current popular platforms are Uprint & Printerous. These platforms provide details of products, free consultation, and web feature with drop file option for quick response. The results or printing products will be sent out directly to their customer using third party logistic services.
“These online platforms should determine the next normal behavior of printing industry. Collaborating digital-analog technology and being aware to the current trends and demands are the keys to survive & strive in the Next Normal,” ends Latief.