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Copier and Printer Sales Post Strong Growth for Fourth Quarter in India

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In the wake of a stellar third-quarter 2017, the Hardcopy Peripherals (HCP) copier/MFP/priinter market posted another strong quarter with 877,945 unit shipments in fourth-quarter, for a healthy year-over-year (YoY) growth of 19 percent as per the latest IDC Asia-Pacific Quarterly Hardcopy Peripherals Tracker, 2017Q4.

According to IDC, Japanese brands have strengthened their position in the Indian market. Three out of the top five performers are Japanese companies, capturing almost half of the India market (48.6 Percent). U.S.-based brand(s), followed with 41.4 percent market share, a slight dip from 41.9 percent in third-quarter 2017.

Inkjet shipments grew by 19.3 percent YoY, with overall shipment of 415,135 units, while laser printers including copiers, also had a similar YoY growth of 19 percent, with overall shipments touching 408,891 units. the India laser-based device market was the second-best market in the entire Asia-Pacific region, unit wise.

“The growth in the last quarter of the year was driven by GST implementation in the country continuing its momentum from previous quarter. Government lowered the tax slab on multi-function printers from 28 percent to 18 percent, effective November 15, leading to increase in preference for MFPs post the slab change. From a YoY perspective, fourth-quarter 2017 performed significantly better than the demonetization affected fourth-quarter 2016. In the inkjet market, ink-tank printers continue to dominate the market, with all the leading vendors focusing on home and SMB segment to drive the shipments. Laser-printer market witnessed a strong growth in the copier segment, which saw high demand from BFSI sector, followed by Government,” commented Bani Johri, market analyst, IPDS, IDC India.

 

Top-Three Brand Highlights

HP Inc. remained the overall market leader in HCP, with a share of 41.4 percent and a 11.8 percent YoY growth. The laser HCP (printer-based) market, similar to third-quarter 2017, remains dominated by HP with a 54.2 percent unit market share. It maintained its second position from the third-quarter in the inkjet market with a market share of 37.6 percent.

According to the IDC India Monthly City-Level Printer Tracker, laser HCP (printer-based), demand from India’s West Zone outpaced demand from the East and South Zones. HP comfortably leads the way with 15.6 percent demand coming from West Zone. India’s Delhi was second only to Maharashtra in terms of demand for laser HCP (printer-based) printers overtaking India’s West Bengal, Rajasthan, Uttar Pradesh, Tamil Nadu etc.

Epson retained its first position in India’s inkjet market with a unit share of 45.1 percent and unit shipments totaling 187,019 units. It also witnessed a 28.3 percent YoY growth in inkjet shipments, primarily due to the growth of its M-series models. Epson’s “deep channel penetration and focus on the home segment are the key factors contributing to its market leadership in the inkjet category,” according to IDC.

The addition of new channel partners in India’s Mumbai and Pune, and deep penetration in smaller cities such as Pune, where demand for ink-tank printers outpaced that of some big cities such as Chennai and Bangalore, also helped propel Epson to the first spot in the inkjet market.

Canon too had a good quarter with an overall growth of 25.3 percent YoY. Laser printers led the way, clocking a YoY growth of 18.8 percent on the back of strong push by Canon in the copier/MFP market, especially in the color segment. Canon retained its number-one position in the copier market with 33.4 percent unit market share as a result of its strong sales through its direct channel to large enterprises. In the inkjet market Canon saw one of the best YoY growth of 36.8 percent compared to other vendors, largely due to its strong channel and market push.

IDC India Market Outlook

“Due to excessive channel stocking that has happened in previous two quarters and GST impact on printer demand nearly over, (the) market is expected to be soft in first-quarter 2018. On the consumer side, demand is expected to be muted as, post the government budget, some new taxes have been introduced ,which are likely to affect their spending. On the enterprise side, digital transformation initiatives in government and other verticals will likely lead to replacement of legacy systems, with newer copiers which possess better print security features and device-management capabilities.,” said Nishant Bansal, research manager, IPDS, IDC India.

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