The production print industry is in a constant state of flux, re-evaluating business models and converging across applications to cope with widespread market shifts, changing customer demands, new technologies and new competitors.
As a result, printers are pivoting to offer new services, improved types and run lengths while also adding creativity and value to brand experiences. Many are choosing to add new technologies or migrate into new segments that expand their overall capability.
While there’s been a decline in overall print volumes and margins in multiple markets, some print applications—such as packaging, label and embellishment—have seen contrasting growth. In fact, the global packaging printing market is expected to grow at a CAGR of 9% over the forecast period (2021-2026).1 And the global market for label printing will continue to increase until 2024 by an annual average rate of 5.5%.2
There is, however, no one-size-fits-all solution to increase profitability and no easy answer of where to invest. For print companies, these difficult decisions could ultimately define the future success, and even existence, of their business. So it’s vital that they choose the right partner.
Digital Transformation of Production Print
Digital transformation is the use of new, fast and frequently changing digital technology to meet changing market requirements, solve problems and capitalize on opportunities. It allows print businesses to find competitive advantages to meet new demands for speed, reduce errors and improve quality and ease of use—not to mention optimizing operations while servicing new segments or finding new ways to become more cost-effective and agile. Embracing transformative solutions is essential for printers to ensure they remain competitive.
Konica Minolta has a broad range of innovative print solutions that enable digital transformation, including digital inkjet (The AccurioJet KM-1e), AI, workflow software and process automation, and cloud solutions. We’re striving to drive growth for businesses in the print industry with greater versatility across new markets, which in turn will inspire creative outputs and new-found routes to operational efficiency. Our expanding portfolio can fulfill the changing needs of print businesses across the industry.
Commercial Print and Publication Services
Commercial print encompasses a wide variety of printing businesses, such as direct mail, print-for-pay and franchise, as well as publishers, and includes the creation of brochures, catalogs, postcards, newsletters and books. In this segment, brand managers and advertising, marketing and graphic design experts are often the true end-customer. Applications use a range of digital printing and sheet-fed presses for offset lithography and other commercial printing processes. Solutions from Konica Minolta in this segment include the AccurioPress C14000/C12000, AccurioPress C7100/C7090, AccurioPress C4080/C4070 and AccurioJet KM-1e.
Low margins can be a bit of a challenge here, and there’s a need to reduce costs and provide shorter runs. Quality is typically most important, so compromises are difficult to make. Production management cycles are often home-grown or based on MIS systems, which may pose limitations. However, there are opportunities to grow revenues by expanding into marketing and packaging, increasing personalization and improving quality on ultra-high volume inkjet printers.
Packaging and Label Converting Services
Also known as hybrid printing, this segment is evolving, along with the technology for enclosing or protecting products and label manufacturing. Consumer markets are increasingly driven by brand experiences, with new packaging and label innovations enabling brands to stand out from the noise and helping to form buyer impressions of the brand and product across touchpoints. Solutions from Konica Minolta in this segment include label devices such as the AccurioLabel 230 and PLS-475i with variable data printing services. Packaging can be attained by any of our toner-based devices already mentioned, including our flagship inkjet AccurioJet KM-1e. Konica Minolta also offers a short-run box printing solution called the PKG-675i for impressive custom boxes to promote any new business. Lastly, our embellishment offerings from MGI sets us apart from the competition on any shelf due to its brilliant stand out varnish and foil capabilities.
Demand for shorter and shorter runs and, thus, workflow and supply chain management, is a challenge. Businesses must understand changing label requirements (e.g., food products) and take action to combat costs associated with advertising and market testing. But changing buyer needs means digital labels have become a growing requirement, and label manufacturers can also capitalize on greater demand for more personalized offerings.
In-plant and transactional services
In-plant solutions (a.k.a. central reprographics departments) target businesses of varying sizes, ranging from educational institutions and government agencies to manufacturing and other sectors. In-plants are primarily engaged in reproducing text, such as for brochures or presentations, and may include transactional services focused on invoices and credit letters as well as fulfilment, mailing and other electronic services. Solutions from Konica Minolta in this segment include the AccurioPress C14000/C12000, AccurioPress C7100/C7090, AccurioPress C4080/C4070, AccurioPress 6136/6120, IQ-501, AccurioPro Flux, AccurioPro Color Manager, AccurioPro Connect and AccurioPress 6136P MICR.
Challenges include tight turn-arounds and issues around security and SLA management. In-plants also compete against work being sent to external third-party vendors, so there’s a need to add value. Opportunities lie in the need to expand into services inside. Marketing services can bridge the gap between marketing needs and internal deliverables.
Graphical and Sign Services
Companies we service in the graphics and sign community primarily serve business-to-business customers, including food services, corporate branding and non-profits. These business will create graphics and signage for interior (POS signage, in-store displays, etc.), exterior (billboards, vehicle graphics) and specialty needs such as decor (window designs, electrical and fabric). Solutions from Konica Minolta in this segment include the AccurioWide 200, AccurioWide 160 and Colex Cutter.
Margins are low in this segment as well, and there is a need to reduce costs and provide shorter runs. But quality is typically most important in this vertical, so no compromises can be made. However, the most significant crossover migration in the printing industry is between this segment and opportunities for expansion in commercial printing.
Igniting Print Possibilities
To summarize, print businesses are pivoting to take advantage of significant market shifts in the new era of print, experience, creativity and performance. Through Konica Minolta’s portfolio of print solutions across hardware, software and services, we want to ignite our customer’s opportunities in print. We look to help them take advantage of growth in other segments and thrive with greater creativity in this new era. As partners to our customers, our role is to help them implement transformative solutions, acting as an indispensable partner to create the future of print.
1 Packaging Printing Market (2021-2026), Mordor Intelligence
2 The Future of Label Printing to 2024, Smither
