Subscription models are one of the fastest growing forms of e-commerce sales.
Subscription models are not really a novelty, they have been around for years in a more analogical format, like the ones we used to do with newspapers, gyms, etc. The same idea has been transformed into one of the fastest growing models in platform commerce.
A Gartner study indicates that by 2023, 75% of the companies that now sell to their consumers will also offer that same sale under some type of subscription (physical products, access to platforms, etc.).
E-commerce has evolved very quickly, especially in recent years, but it is interesting to know the history of e-commerce from its beginnings. Its immediate predecessor dates back to the 1920s in the USA with catalog sales. Some companies wanted to respond to customers who wanted to shop but lived in rural areas. Stores were far away. In addition, they saw potential in other customers who wanted to shop conveniently from home (without having to travel). The expansion of the telephone as a fundamental tool for sellers, and the use of credit cards, which allowed payment without the need to be present, gave rise to new ways of doing business that were no longer just physical.
Then, with the arrival of the WWW, and in the 90s with the explosion of the .coms and the creation of Ebay and Amazon, the rise of e-commerce was unstoppable.
Since then, new online sales models have emerged (not only stores but also platforms such as Marketplace or Dropshipping) and subscription models, all in response to consumer changes and technological evolution (which is becoming faster and faster).
If we are talking about replacement products, such as printer consumables, the benefit for the customer is to always have the consumable available without having to remember it, knowing that he will receive a replacement of known quality and at a price with no surprises. For the supplier, the most obvious advantage is undoubtedly the generation of recurring revenue, which reduces its cost per sales transaction and allows it to have better stock forecasting.
The subscription sales model is designed to win more loyal customers. This is well known by printer manufacturers themselves who, like HP, have decided to go all out and, without relying directly on the channel, to gain the trust of end customers (consumers and SMEs). Although the cost of acquisition is higher than in other types of e-commerce, the value provided by the customer in the long term is much higher and more than compensates for it. An example: the sales value of the consumables used by a printer for 5 years is 5 times the sales value of the printer itself. In a scenario in which, in the short and long term, the durability of the printers is prioritized for reasons of sustainability (we are talking about the circular economy), the control of the supply of consumables consumed by the end customer is the key to the survival of businesses.
Another benefit is the greater possibility of cross-selling or upselling, offering improvements to the customer on the current service or related products or services to obtain a superior experience.
For all these reasons, it is not surprising that the value of a company is increasingly measured in terms of its number of subscribers.
Source: Paradigma Digital, Nubeprint
Mobile commerce (m-commerce) is becoming increasingly popular.
The increase in the use of mobile devices has meant that mobile commerce is currently playing a greater role than e-commerce. The bases are exactly the same as those of e-commerce but online purchases are made from smartphones or tablets. Many users make use of m-commerce, either through the browser or an application. In this way they can shop anytime, anywhere without any limitations.
Shopping behavior and habits are changing thanks to the advent of new technologies, including machine learning (ML) and business intelligence. Consumers have more relevant information at their fingertips. ML analyzes the preferences of each user to present the products that best suit their tastes and needs. In turn, the shopping portal offers more possibilities in a more intuitive way. The consumer can and prefers to obtain and compare products or information online, thus being able to make better decisions.
In the consumables market, the Nubeprint app allows consumers to activate the monitoring of their printer from their mobile, and thus have a direct channel with the store of their choice to enjoy services such as automatic reservation of consumables, purchase with automatic replenishment, or even technical service of their equipment with a single click. Any e-commerce or m-commerce platform can activate this service that guarantees a direct and recurrent contact with your smallest customers.
Source:Technology for Business, Nubeprint
Digitalization and sustainability have become an indivisible binomial.
To obtain sustainable printing, it is not enough to raise awareness in business and industry; society must also be aware of the importance of the term ‘sustainable brand’, which implies knowing under what conditions the product has been manufactured and with what materials. To this end, public administrations must be responsible for informing society and taking measures in this regard, so that society finds other motivations apart from the quality/price ratio of a product. Certain NGOs and citizens’ groups are already making efforts at the educational level, but there is still a long way to go before people are aware of and can become adequately involved in the maintenance of the environment. We must reach the point where consumers, before buying a product and looking at the price, look more closely at whether its manufacture avoids the emission of hazardous substances, and that it has been assessed and approved by experts and independent institutions.
The so-called digital transition and ecological transition are practically omnipresent on institutional and legislative agendas, and the main industrial players at national and international level take it for granted that one revolution cannot take place without the other. Analyses made during the confinement confirm that the most sustainable mobility is that which is not produced, recommending taking advantage of the benefits offered by technologies to foster teleworking and increase remote management and service delivery models.
Automation, driven by artificial intelligence and IoT connectivity, is one element that opens the door to much more efficient mobility models in this sector.
Source:Nubeprint
Managed print services will see a recovery in the next few years.
The market was negatively impacted with the emergence of COVID-19, but strict regulations imposed to reduce plastic waste and efforts to reduce operating costs are expected to drive growth in such services. Large enterprises have been the primary demand for managed print services, and demand is growing among small businesses and consumers.
The global managed print services (MPS) market generated $30.91 billion in revenue in 2019, and is projected to witness a compound annual growth rate (CAGR) of 6.2% from 2020 to 2027, according to Grand View Research. Meanwhile, the SME segment is expected to register the fastest CAGR from 2020 to 2027. This may be associated with the changing trend of smaller organizations towards subscribing to managed print services, as well as the increased ease of access to such services, such as with the Nubeprint app that allows the end customer to activate the subscription service for consumables replenishment from mobile.
In 2019, the BFSI (banking, financial services and insurance) segment dominated the global managed print services market. Increasing demand for MPS systems in government, IT, telecom, education, and retail organizations is expected to drive market growth.
Adoption of MPS can help reduce local printer requirements, analyze printing needs, replace inefficient devices, extend the life of efficient ones, automate supply delivery, reduce or even eliminate single-use cartridges, and enable remote operations. In addition, the growing need to reduce energy consumption and provide customizable solutions is expected to generate demand for such services. These services have access to email, ERP systems, and cloud-based repositories. In addition, features such as higher performance, lower prices, reduced physical footprint, and increased productivity are expected to fuel the growth of such services.
Source: Grand View Research, Nubeprint
The chip crisis prevents MPS service providers from automatically managing printer cartridge replenishment.
The chip crisis is causing an adverse effect on the office printing industry. The manufacturer Canon announced that it has started to market some print cartridges without the functionalities enabled by the chips because the appropriate electronics are not available. One of these features is the ability to know the level of consumable remaining in the cartridge at any given moment. In cost-per-copy contracts and in consumables replacement subscription services, information on the remaining toner level is crucial. When this information is not available, the supplier (service provider) does not know whether or not to send a cartridge, preventing it from fulfilling the services contracted with its customers.
To solve this problem, Nubeprint has implemented Virtual Level Sensor (VLS) technology. Thanks to this unique Nubeprint technology, the supplier knows in real time the level of the cartridge. VLS supports computerized cartridge replenishment management: The supplier sets alert thresholds; alerts are automatically notified in order to initiate the consumables shipment process.
Any Nubeprint customer of Enterprise and Zero 2020 and later versions can have VLS technology or request activation by contacting info@nubeprint.com
Source: Tonernews.com, Xataka.com, Nubeprint
The demand for subscription services in printing has skyrocketed and is now a reality.
The survey of business users of different sizes reveals that 40% of respondents have an automatic ink/toner delivery service and another 43%, who do not currently have one, would be interested in obtaining one. Fifty-two percent of respondents from smaller organizations have a subscription, compared to only 27% among larger companies.
The data points to a development of two speeds in moving to hybrid work, where small and medium-sized companies are moving more quickly than larger, less agile companies. The former is more proactive in addressing security issues and provides more support to home workers, who in turn report higher productivity than their counterparts in larger companies.
Employees in larger companies feel less productive than their SME counterparts, which is of concern because this group is the most likely to continue working from home in the future. It may be due to the fact that larger companies have larger work teams that need more support to collaborate effectively. It may also be due to having more legacy processes, which makes it difficult to digitize as quickly as in smaller, more agile organizations.
If large enterprises want to succeed with hybrid work, they must act with urgency to better control and automate the provisioning of supplies for their workforce and provide better support for the remote workforce.
There is a great opportunity for print equipment and supplies distributors to offer customized services to new hybrid organizations to help them transition safely and cost-effectively from face-to-face to hybrid work. An automatic consumables replenishment service enables the remote worker to maintain productivity. The client company perceives it as a cost control service tailored to its specific needs.
Source: Quocirca, Nubeprint
We are entering 2022 and with it positive expectations regarding the end of the pandemic caused by Covid19. However, the confinement is not only not over, but has been aggravated by the arrival of a new variant of the virus. Despite this, some business niches have adapted and even increased their sales. Such is the case of home printing equipment, which, with teleworking and distance learning, has consolidated a market that requires smaller devices, but just as efficient as those used in companies.
Over time, people have become more accustomed to new ways of doing business from home and this includes working with printing equipment that allows them to visualize their files in a wide and detailed way. This is how home printing has become established and adapted to the needs demanded by the market in terms of efficiency, utility and savings.
There are still some work sectors for which printing is essential, and that is why there is a need for home equipment that has the same fidelity as the devices in the office, and with similar services that avoid the distractions caused by their maintenance. Similarly, print cost control must be maintained in teleworking equipment. This is already being done with offers of automatic replenishment services in which printers are monitored at all times with the Nubeprint mobile app.
Source: Nubeprint
From an environmental point of view, original and alternative consumables have the same carbon footprint.
From an environmental point of view, original and alternative consumables have the same carbon footprint.
Today’s customers want products to be green, affordable and high quality but committed to a positive impact on society and the environment. The paradox occurs in the face of a lack of user awareness and maliciously encouraged by the industry that seeks to confuse concepts such as originals, clones, remanufactured, refills and pirates.
If we ask a group of printer consumables buyers how they would define an “original” product, the immediate response is that it is a product that is “new and of the same brand as the printer”. But that is not necessarily the case, because major brands such as Lexmark, Xerox and others have return and remanufacturing programs, and sell their product as original regardless of whether it is new or remanufactured.
Brands launch anti-piracy schemes using terms such as: consuming non-original products causes damage to printers that will not be covered by the “brand warranty”.
A clone product is an alternative but it is also new and spends the same carbon footprint as a new original in its production, and here the brands are right to be careful in the use of their patents because the supply does not have the same quality standard and can effectively damage the use of the printers. In addition to the damage generated by substandard manufacturing, many clones do not live up to the performance they claim to have.
To ensure the highest sustainability, remanufactured or remanufacturable cartridges should be used. This is the understanding of legislation in France, Italy and the Balearic Islands in Spain.
Source:Imprime Verde, Nubeprint
The shortage of semiconductor chips in the market has created new opportunities for the printing channel.
The global shortage of semiconductor chips will persist until mid-2023. This was driven by the Covid-19 pandemic that has led to increased demand for smartphones, laptops, printers and tablets to support remote work, as well as consumer demand for home technology. This has been joined by massive new demands for chips, most notably the automotive industry. All this has put immense pressure on factories, leading to demand outstripping supply.
According to data from the Semiconductor Industry Association (SIA), global semiconductor sales were $45.4 billion in the month of July 2021, a 29% increase over the July 2020 total.
This upward trend is likely to continue due to ongoing post-pandemic digitization, 5G and WiFi 6 upgrade cycles to the wireless market, and the need for more advanced chips for applications such as AI and machine learning along with cloud computing. The continued rapid growth of Internet of Things (IoT) devices is a heavy burden on the chip market struggling to return to full supply capabilities.
The printing industry has already been hampered by office closures that have seen print volumes decline significantly. Chip shortages are creating more uncertainty in the market, with many OEMs reporting the impact on their financial statements. Like many industries, print manufacturers have been using alternative supply routes and re-engineering devices to meet customer needs. Beyond chip shortages, the industry also faces challenges related to material availability, labor shortages, blockages and logistics.
Limited chip supplies are putting pressure on margins and, predictably, prices are rising; according to The Wall Street Journal , printer prices have increased more than 20% in a year.
In an already challenging business landscape, how can MPS and print material suppliers in general best handle supply chain disruption?
As some workers return to the office, organizations may be looking to change the size and type of their printer fleets to support a more flexible, hybrid workforce (meaning one that works from both the office and home). Hence, extending current MPS contracts can only be a short-term solution.
There is always a risk that, as companies evaluate the office space they need, lower print volumes on fewer devices will become the new reality. To this must also be added the need for printing by home workers, without which the productivity of some jobs is being seriously affected.
However, the industry has long needed to transform into something that goes beyond the change of equipment. The chip shortage should be seen as an excellent opportunity to consider how to build value-added solutions and services around hardware that can pave the way for customer relationships focused on higher-value service over the long term. This is also driven by the growing demand for sustainable solutions, including the use of equipment based on its functional life (and not on contractual criteria or other whims).
In these times of scarcity, we are experiencing a boom of companies offering refurbished equipment. While their opportunity is based on the simple fact of having stock to meet a demand, it should not escape our attention that the incorporation of this equipment in a company favors the fulfillment of its sustainability objectives. Consequently, those MPS companies must learn to manage the growing value of having printing resources in a market where demand far outstrips supply.
Moving print to the cloud is another opportunity for the industry. It allows the company to minimize dependence on new print servers and its benefits go beyond hardware. A cloud print infrastructure minimizes the IT burden, reduces costs (financial and environmental) and can help an organization better manage and monitor print security.
The new organization of work in a hybrid environment brings the opportunity to sell work-from-home specific equipment and in turn the opportunity to manage their needs along with that of office-based equipment. Only by demonstrating to the customer company that telecommuting printers are under the same tight cost control will they agree to provide remote printers to the workstations that need them. Clearly, this is possible with Nubeprint’s distributed monitoring ecosystem that can be activated from the teleworker’s smartphone.
Sustainability in printing is also a factor that creates new opportunities around printers (extending their useful life) and consumables (facilitating their circular economy). Some legislations already recognize this. Italy, France and the Balearic Islands (Spain) have been the pioneers. But many other countries are preparing their legislation. And practically all major companies include it in their Sustainability, Social and Corporate Governance (ESG) objectives.
Source:SIA, RTM World, Nubeprint
Paper made from stone instead of trees was developed 20 years ago, mainly for offset printing, but a new improved version makes it suitable for office and home use; this paper uses mainly stone powder, no trees or water are required and only a fraction of the energy invested in other paper manufacturing processes is needed for its production, thus drastically reducing CO2 emissions and eliminating poisonous chemicals.
As a result, the paper is cheaper to produce and is better for the environment than conventional paper products.
Stone paper is 80% calcium carbonate, a substance that is much more abundant than trees and is also a common by-product of carbon-consuming industrial processes. The other 20% is polyethylene.
Stone paper uses HDPE (high density polyethylene) plastic, the extreme efficiency of this minor component reduces the total fossil fuel consumption of paper production and completely eliminates wastewater and trees from paper production. The plastic component is actually the key to its extreme sustainability.
These two ingredients make the paper waterproof, non-toxic, tear-resistant, soft to the touch and bright white without any chemical bleach. The base material is photodegradable, which means it reverts back to calcium carbonate in 6 months under direct sunlight, is highly recyclable and is easier to remove ink than regular paper.
It can be mechanically recycled and incinerated without producing high emissions or ash. Incineration of stone paper leaves only calcium carbonate for later use in other industries.
Source:Pebble Printing Group, Nubeprint
